Useless Coin surges 2,470% to $0.1462 as whales accumulate and Fed hints at rate cut

Useless Coin (USELESS), a meme coin on Solana, experienced a significant surge, reaching a new all-time high of $0.1462 on June 24. This marked a 2,470% increase from its lowest point earlier in the month, propelling its market capitalization to over $133 million. The rally was fueled by a broader market uptick, as Bitcoin and most altcoins rose following a truce between Israel and Iran. Additionally, the token's price jumped after two Federal Reserve officials indicated support for a 0.25% interest rate cut at the July meeting.

Whale activity played a pivotal role in the token's surge. According to Nansen data, whales have been accumulating Useless Coin, with their holdings increasing by 15% in the last 30 days to 381 million tokens. Whale holdings are often seen as a bullish signal, as these investors are typically more experienced and have a longer-term perspective. Furthermore, exchange balances of the Useless token have decreased by 13% in the last 30 days to 51.4 million, suggesting that investors are holding onto their tokens rather than selling.

The price increase can also be attributed to the Fear of Missing Out (FOMO) among retail investors. Newly launched tokens often experience rallies as investors speculate on their potential for significant gains. However, these surges are often short-lived, with tokens frequently pulling back as early investors take profits. A notable example is Official Trump (TRUMP), which surged in its early days in January before plunging.

Technical analysis of Useless Coin's four-hour chart reveals a strong bull run over the past few weeks. The token has climbed from a low of $0.00546 in June to its recent high of $0.1462. It has rallied above both the 50-period and 100-period Exponential Moving Averages and broken above the upper side of an ascending channel. However, both the Relative Strength Index and Stochastic Oscillator have moved into overbought territory, indicating a potential pullback in the coming days. The token could retest the psychological level at $0.10.