🚀 Short Squeeze on $USELESS /USDT: The culmination of the pump or a lull before a new impulse?
Over the past few days, the $USELESS /USDT pair has shown impressive growth, soaring from the bottom around $0.03305 to a local peak of $0.10531 (over +200%). Let's analyze the metrics and understand what is really happening in the market.
📊 Key indicators and technical analysis
➡️ Price momentum and volumes: After a long downtrend, a parabolic breakout occurred. The price significantly broke the upper boundary of the Bollinger Bands, indicating strong overbought conditions. Trading volume reached a maximum (over 150M), a signal of the culmination of purchases.
➡️ Open interest (OI): Rapidly increased from $51.38M to $151.01M. The inflow of capital into the futures market occurred in parallel with the price growth - large volumes of positions came into play.
➡️ Funding Rate: Funding has entered a deep negative (negative values up to -0.02% and below). The market is squeezed by shorts, and it is the forced liquidation and closing of short positions at market prices that is the main "fuel" of this explosive growth.
➡️ Spot CVD vs. Derivatives: Spot delta volume shows only moderate purchases. The main driver of the movement is derivatives and aggressive eating up of the Ask-limits glass.
🎯 Price movement scenarios
1. Correctional (Priority): Accumulated overbought and resistance at $0.10531 increase the risk of profit-taking. A deep pullback to the EMA(5) / EMA(10) zones in the range of $0.087 - $0.093 is expected.
2. Short squeeze continues: If negative funding holds and shorts continue to average, another explosive impulse above $0.10531 is possible to remove upper liquidity.
⚠️ Risk management: Buying at the very peak after a parabolic rise is a classic "FOMO trap". It is safer to wait for funding to stabilize and support to be confirmed on the correction.
Over the past few days, the $USELESS /USDT pair has shown impressive growth, soaring from the bottom around $0.03305 to a local peak of $0.10531 (over +200%). Let's analyze the metrics and understand what is really happening in the market.
📊 Key indicators and technical analysis
➡️ Price momentum and volumes: After a long downtrend, a parabolic breakout occurred. The price significantly broke the upper boundary of the Bollinger Bands, indicating strong overbought conditions. Trading volume reached a maximum (over 150M), a signal of the culmination of purchases.
➡️ Open interest (OI): Rapidly increased from $51.38M to $151.01M. The inflow of capital into the futures market occurred in parallel with the price growth - large volumes of positions came into play.
➡️ Funding Rate: Funding has entered a deep negative (negative values up to -0.02% and below). The market is squeezed by shorts, and it is the forced liquidation and closing of short positions at market prices that is the main "fuel" of this explosive growth.
➡️ Spot CVD vs. Derivatives: Spot delta volume shows only moderate purchases. The main driver of the movement is derivatives and aggressive eating up of the Ask-limits glass.
🎯 Price movement scenarios
1. Correctional (Priority): Accumulated overbought and resistance at $0.10531 increase the risk of profit-taking. A deep pullback to the EMA(5) / EMA(10) zones in the range of $0.087 - $0.093 is expected.
2. Short squeeze continues: If negative funding holds and shorts continue to average, another explosive impulse above $0.10531 is possible to remove upper liquidity.
⚠️ Risk management: Buying at the very peak after a parabolic rise is a classic "FOMO trap". It is safer to wait for funding to stabilize and support to be confirmed on the correction.
