The meme-token sphere remains ever volatile and surprising, and one of its latest offerings is $USELESS.
After a brief but mighty rally that brought in some really impressive inflows and even some whale activity, the token now finds itself at a crossroads. Is this a temporary breather before the next leg up—or has the hype run out its course?
A $USELESS Whale-Backed Rally
On May 17, the market noticed $USELESS surge in buying activity. On that day alone, the token saw net inflows of over $300,000, which is an obscene amount for any asset to see coming in as a result of any one day’s worth of trading. It seemed, to us at least, to be what we would call a one-day event. That said, however, we’re not really sure what to make of it. It could be very serious business with a whole lot of serious money backing it, or it could just be a big old token lacking the sort of fundamentals that would let us believe in its long-run value.
https://twitter.com/StalkHQ/status/1924421007848214807?t=38K2gSiDVSj10Pr0HkXEFg&s=19
The activity of these whales often acts as an indicator of the wider retail sentiment in the market. When these big players make moves, retail investors often do the same, expecting to catch some momentum. And for a minute there, it looked like we were once again following that old script. The token’s price shot up as interest in it spread across social media, Discord, and our good old trading forums.
Momentum Stalls Out
That initial push, however, seems to have hit a wall. Since the spike on May 17, the inflow of new capital into $USELESS has notably slowed. A modest uptick in netflow on May 18 gave bulls some hope, but that optimism has been quickly tempered. As of today, netflows have turned negative, suggesting that more money is now leaving the token than entering it. This shift marks a clear change in sentiment—and a potential turning point.
A negative netflow isn’t always a harbinger of doom, but it is a flashing yellow sign for the underlying asset. It shows that new enthusiasm is not there, and it is definitely not there for meme coins. It also raises questions about the newly existing holders of the underlying asset and their willingness to continue holding the cloud of sentiment that fuels the hype engine. With a waning negative netflow seems to also go some meme coin momentum.
Watching the Whales On $USELESS
What happens next with $USELESS depends on two things: if new buyers come in to restore the momentum, and if the big holders might consider taking profits. Buyers would restore momentum and could possibly launch $USELESS into a new leg up. Sellers could trigger a waterfall decline that shakes out the weak hands. The two possible outcomes lie at opposite ends of the spectrum.
The top wallets are now in the spotlight. Their forthcoming actions will probably determine the price’s direction in the near term. If the whale who put in almost $170K doesn’t just hold but adds to that position, it’s likely a thumbs-up for the price.
On the other hand, if that wallet starts doing the opposite, it’s likely a thumbs-down for the price and could lead to a lot of smaller holders heading for the exits to try and preserve profits.
$USELESS now approaches the inflection point. It has demonstrated—through little else than its name—the capacity to draw in attention and capital. Its time in the spotlight has come and gone, and with it has gone the easy, attention-grabbing part of the project. Now, it’s time to figure out how to maintain, if not increase, interest in and investment in $USELESS.
Final Thoughts
The next 48 to 72 hours are crucial for crypto traders and enthusiasts of meme coins to observe. The potential for $USELESS to rebound or continue declining hinges largely on what happens with the project’s wallets and how much confidence the larger community has in $USELESS as a price maker. In other words, is there power in the $USELESS meme to push the price up?
In a market ruled by sentiment, perception, and timing, $USELESS now appears to be just a hair above water. Is it merely catching its breath, or are we witnessing the start of a potentially prolonged cool-off phase? Whatever the case, the answer is coming—and the whales might just write the script.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
No Comments