USELESS Coin up 12% as leverage rises sharply – Will it hold above $0.07?

USELESS Coin sees a 12% surge, raising questions about its ability to remain above $0.07 amid rising leverage and renewed memecoin interest.

With memecoins making headlines again, the sudden surge of USELESS Coin has caught many traders by surprise. Just yesterday, it shot up by an impressive 12% in a 24-hour period, shifting a weekly trend from losses to a gain of approximately 5% . The renewed interest in memecoins has triggered a notable spike in Open Interest (OI), creating a buzz in the crypto market. What Are the Driving Forces Behind USELESS Coin's Surge? The resurgence in USELESS Coin’s price coincided with similar movements from other popular memecoins like FARTCOIN, BONK, and dogwifhat [WIF]. What sets USELESS Coin apart is its remarkable market leverage. As of the latest reports, it boasts the highest OI-to-market-cap ratio at 11.86% among memecoins currently listed on Binance perps. The exact figures reveal an OI of $8.30 million against a market cap of $70 million . How Does Leverage Impact the Market for USELESS Coin? The notional value of outstanding derivatives contracts for USELESS Coin has seen a significant uptick on both centralized and decentralized exchanges. On platforms like Lighter, which made USELESS Coin one of its prime listings, it shows more perps OI compared to almost every other memecoin, aside from TRUMP. This excessive market leverage indicates that the current rally was propelled by heightened trading activity and speculation. However, it comes with caveats. When Open Interest skews excessively, it can lead to heightened vulnerability for traders, particularly in the event of rapid deleveraging, liquidation cascades, or severe price squeezes. Can the Bulls Sustain This Momentum? The recent price increase has been driven by an explosive buying volume, which has surged by 9.9x in the last 24 hours. This bullish momentum reached its peak when the price hit $0.07745 , following a significant short squeeze that occurred just above the critical level of $0.07065 . However, the market remains precarious. While bulls have been actively defending key levels—especially liquidity