Crypto & Forex July 7, 2026 0 Comments

Bullish Signals Are Lying to You—Here’s Why the Next Profit-Taking Wave Could Wreck Your Portfolio

Ever wonder how something as seemingly “useless” as a memecoin could outpace the behemoth Bitcoin in just a week? Well, that’s exactly what’s been unfolding in the mercurial world of crypto where the memecoin sector just flexed some serious muscle — boosting its market cap by a nifty 11.5%. It’s like watching a scrappy underdog show up and steal the spotlight at the big dance. Yes, tokens like Useless [USELESS] might sound like a punchline, yet they’ve been rallying hard with a 26% jump in seven days and a jaw-dropping 14.47% climb in just 24 hours. Now, before you get carried away, remember the game isn’t just about raw gains but the story behind what drives these spikes — liquidity sweeps, short liquidations, and a market thirst that’s pretty darn telling. So, is USELESS just a funny name with short-lived hype, or could it be a sneak peek into the next big trading play? Let’s pull back the curtain and see what’s really shaking beneath those price charts. LEARN MORE.

The memecoin sector has been one of the best-performing sectors in crypto over the past week. Data from Glassnode showed that the sector has improved its market capitalization by 11.5%, outperforming Bitcoin [BTC] gains by a comfortable margin.

Useless [USELESS] was one of the strongest short-term bullish memes in the market, with a 26% rally in the past week and a 14.47% move in just the past 24 hours.

Yet, with a market cap of only $99.85 million at the time of writing, it was hardly the one moving the needle for the memecoin sector.

Other tokens like Memecore [M], with its flash volatility, and the 15% weekly price bounce Pepe [PEPE] have contributed more to memes’ strength. Yet, that does not take away from USELESS as a potential trading opportunity.

Should you buy the USELESS momentum?

USELESS 1-day Chart — Source: USELESS/USD on TradingView

On the 1-day chart, the technical indicators were all bullish to varying degrees. The A/D has been forming higher lows since April, but has not made new highs yet. The OBV was different and has kept up its uptrend despite the heavy losses in January and February.

This suggested that the relatively small-cap memecoin retained bullish market participant conviction and could move higher on the back of this demand.

The moving averages were well below the market price, and the MFI was at 73. Both momentum indicators also favored the bulls.

Yet, structurally, the price action retained a bearish long-term bias. The current move up to $0.101 remained within the bounds of the 78.6% retracement level at $0.109.

A breakout past the swing high at $0.131 is needed to flip the long-term structure bearishly.

Traders’ call to action- Sell

USELESS Liquidation Heatmap — Source: CoinGlass

The recent surge higher swept the pocket of liquidity at $0.095. The influx of short liquidations forced market buy orders that helped push prices past $0.1.

The liquidity sweep, backed by steady spot demand, might yet result in a USELESS trend reversal.

That moment is not yet upon us. The $0.131 level is the line the bulls must hold. As things stand, traders and investors can look to take profits from the bounce and remain sidelined or even position themselves short, with invalidation above the swing point on the daily timeframe.

Final Summary

The memecoin sector has seen some capital inflows, and USELESS was one of the memes with bullish short-term sentiment.
The $0.109-$0.131 was a crucial overhead resistance. If broken, the long-term trend would flip bullishly.