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USELESS Plunges After Leverage-Fueled Rally, Testing Key Demand Zone

Heavy long-biased perpetual flows plus clustered stop levels have driven a sharp deleveraging that could expose the token to a much deeper decline.

Overview

  • The Solana memecoin rose hundreds of percent from its August low to about $0.337 before reversing as leveraged positions built up across derivatives markets.
  • Data trackers show huge perpetual activity that supported the rally, with more than $500 million routed through USELESS in a day and an OI-weighted funding measure near $166 million that signaled heavy long exposure.
  • A sudden deleveraging produced an about 20% intraday drop, roughly $2.75 million in 24-hour liquidations concentrated on long positions, and open interest falling about 28 percent as traders closed leverage.
  • Spot exchange inflows increased supply on platforms (roughly $5.09 million in inflows versus $4.29 million outflows) while price moved into a critical demand band near $0.191–$0.235 that will determine whether selling eases or accelerates.
  • Analysts warn of concentrated liquidity clusters below current levels around $0.1483 and $0.097 plus a bearish broadening-wedge pattern and RSI divergence that could trigger a larger long squeeze if the demand zone breaks.