Assessing USELESS Coin’s 18% Rally: Can Smart Money and Social Momentum Sustain the Meme Coin’s Breakout?

The Rally: A Meme Coin’s Moment in the Spotlight

USELESS Coin (USELESS) has surged 18% in late August and early September 2025, fueled by a confluence of social media hype, Smart Money inflows, and speculative trading activity. However, the sustainability of this rally remains contentious. This analysis evaluates whether the price action reflects genuine demand or a flash-in-the-pan meme-driven frenzy.

Open Interest and Volume: Mixed Signals

Open Interest (OI) for USELESS rebounded to $27.37 million in late August after a mid-August decline, signaling renewed trader interest [1]. This recovery coincided with elevated social sentiment, including a 30% price jump following its Binance listing [2]. Yet, trading volume remains a red flag. While OI suggests optimism, 24-hour volume ($34.4 million) is a fraction of mid-August’s $500 million peak [1]. This disparity raises concerns about liquidity constraints, particularly as the price approaches key resistance at $0.36.

Technical indicators add nuance. The MACD showed a bullish crossover, hinting at potential upward momentum [2]. However, the Chaikin Money Flow (CMF) remains negative, indicating weak investor participation despite the rally [1]. This divergence suggests that while short-term traders are active, broader market conviction is lacking.

On-Balance Volume and Smart Money Flows: A Fragile Foundation

On-Balance Volume (OBV) for USELESS improved slightly, rising from -1.788 billion to -1.399 billion in September 2025 [1]. While this signals modest accumulation, the OBV trend remains bearish, with the token failing to break above its mid-August highs. Smart Money inflows, however, offer a counterpoint. StalkChain data revealed $372K in net buys over 24 hours, positioning USELESS as a top performer in on-chain flows [1]. Additionally, whale activity—such as Unipcs’ 2.8% supply holding—suggests institutional interest [2].

Yet, these inflows must be contextualized. The broader crypto market is in a risk-off phase, with Bitcoin dominance rising and altcoin season indices dipping to 44 [1]. This environment pressures speculative assets like USELESS, as capital shifts toward blue-chip cryptocurrencies.

Social Chatter and Meme Dynamics: A Double-Edged Sword

Social media sentiment has been a key driver. LunarCrush data shows a surge in chatter, with USELESS trending on platforms like Twitter and Reddit [1]. This aligns with historical patterns where meme coins leverage viral momentum to attract retail traders. However, social sentiment is notoriously fickle. A 2025 study by Messari noted that 70% of meme coins experience sharp corrections within 30 days of a social-driven rally [3].

The token’s recent performance underscores this volatility. After a 55% surge post-Binance listing, the price retreated to consolidation around $0.208, failing to sustain above $0.30 [2]. This pattern—sharp spikes followed by rapid retracements—is typical of meme coins lacking fundamental value.

The Path Forward: Breakout or Breakdown?

To validate the rally’s sustainability, USELESS must overcome two hurdles:
1. Volume Expansion: A breakout above $0.36 requires a corresponding surge in trading volume. Current levels ($34.4 million) are insufficient to sustain a sustained move higher.
2. Smart Money Commitment: While short-term inflows are positive, deeper accumulation by whales and institutional investors is needed to signal long-term confidence.

Price predictions are mixed. Some models project a rise to $0.2228 by September 30, 2025 [1], while others warn of a decline to $0.0132776 due to weak fundamentals [4]. The token’s technical setup—consolidation with a bullish MACD but negative CMF—suggests a high-risk, high-reward trade.

Conclusion: A Cautionary Bull Case

USELESS Coin’s 18% rally is a product of social momentum and tactical Smart Money inflows. However, the lack of sustained volume and broader market headwinds (e.g., Bitcoin dominance, bearish altcoin indices) cast doubt on its ability to break above $0.36. While the token’s on-chain metrics and OBV improvements hint at potential, investors should treat this rally as speculative. A sustained move higher will require not just social chatter, but a material increase in liquidity and institutional participation.

Source:
[1] Social chatter fuels USELESS Coin's 18% rally [https://ambcrypto.com/social-chatter-fuels-useless-coins-18-rally-more-upside-ahead-if/]
[2] USELESS Coin Price, USELESS to USD, Research, News & [https://messari.io/project/useless-coin]
[3] Cardano (ADA) Price Prediction 2024-2030 [https://ng.investing.com/news/cryptocurrency-news/cardano-ada-price-prediction-20242030-will-ada-price-hit-5-soon-1252957]
[4] Useless Coin (USELESS) price Prediction [https://www.bitget.com/price/useless-coin/price-prediction]