Useless Coin [USELESS] has declined roughly 13% at press time, as the bears continue to steer the wheel of the asset over the past 24 hours.
While the present outlook is grim and bearish, the potential for a rebound has emerged, as chart indicators warn of an oversold market condition, with accumulation already gradually rising.
USELESS enters oversold territory
Chart analysis of USELESS indicates that the asset has now plunged into the lower band of the Bollinger Bands.
This lower band has marked a level where an asset falling into this territory implies there has been massive selling pressure leading to that point. However, the asset is now oversold.
An oversold market condition has historically shown that an asset may be close to seeing an upward rebound, potentially reversing the losses accumulated within that period.
The possible targets when the rebound takes place are the middle band around $0.22 and the upper band at $0.33, with the price possibly extending higher.
The Accumulation/Distribution indicator has also suggested the same bullish outlook, but more moderately, with the indicator ticking slightly upward to around 815.15 million USELESS in weighted volume over the past day.
Spot outflows suggest continued accumulation
The Spot market netflow chart, which tracks the dollar value of an asset flowing into and out of the market, shows bullish pressure.
Accumulation has been ongoing for more than 36 hours so far. The total Spot Net Inflow reached roughly -$432,000 at press time.
A negative spot net inflow suggests that more USELESS is moving from exchange wallets into private wallets, indicating that there has been more buying and that investors plan to hold the asset for longer.
The spot net inflow for the 13th of October remained minimal compared with the previous day, when investors accumulated roughly $1.22 million worth of USELESS. The continued outflow in the spot market adds to the possibility that the asset is likely to rebound.
Whale positions remain bearish despite bullish sentiment
The broader market remains bullish, yet volume movements in the market suggest that the asset may not be completely bullish.
The Long/Short Ratio, which tracks volume based on the dominance of long or short positions, shows that whales are bearish across Binance and OKX.
Whales are traders who control massive amounts of capital, and when their positions are bearish, this may slow down a potential rally.
Despite this, the Long/Short Ratio across all venues where USELESS is traded, as tracked by CoinGlass, shows that the general consensus is bullish for now, with a reading of 1.05.
It is important to be skeptical about whales’ positions in the market, but overall sentiment still tilts in favor of the bulls.
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