Useless Coin targets $0.21 – Can bulls overcome rising liquidation risks?

Useless Coin [USELESS] has extended its bullish trend after a successful breakout at the support zone between $0.125 and $0.145 two days ago. At the time of writing, the token had recorded a 12% surge and was trading above both the 20-day and 50-day Exponential Moving Averages.

Additionally, the token Spot inflows have so far recorded two consecutive days of positive inflows. At the same time, the network’s Open Interest (OI) has recorded a sharp spike alongside its Weighted Funding Rate.

With the next major liquidity cluster near $0.21, can buyers sustain the rally and challenge the previous swing high?

According to the recent on-chain data, USELESS has booked two consecutive days of positive spot inflows.

This points to a returning demand across the network, more so given that the token prices have just bounced from a key support that had initiated several reversals.

That’s not all; USELESS OI has also spiked by about 9% to $51.6 million as of writing, indicating a substantial increase in outstanding derivatives positions. A more increased leveraged position means more volatility, which is a positive factor for the anticipated rally continuation.

Notably, the surging leveraged positions along with Useless Coin’s current rising weighted funding rate. At the time of writing, the token’s Funding Rate was trailing at 0.7%. Together, these metrics point to increased speculative interest. If Spot demand supports the move, additional positioning could help drive prices higher.

However, rising OI does not confirm that all new positions are bullish. Higher funding rates can also signal crowded long exposure, increasing the risk of liquidations if momentum reverses.

The unmitigated liquidity cluster worth about 2.3 million at the $0.21 resistance zone highlights the resistance level as the next target for USELESS bulls.

A sustained Spot inflow and continued buying pressure could help USELESS challenge this level. A decisive move above it would strengthen the current bullish bias.

Nevertheless, buyers and network bulls nullify the chances of short correction despite the long-term structure leaning to the bulls.