US–Iran Finally Set for Friday Negotiations as Oil Prices Sink — So, Why Is the $USOR Token Pumping After 89% Crash?

A sharp divergence has opened up between energy markets and the crypto market.

While physical crude oil has dropped again amid renewed geopolitical tensions, the oil-themed USOR token is rallying after a notable double-digit correction.

Same headline catalyst, radically different outcomes. So, why is the USOR price pumping?

CCN explains everything in this analysis.

US, Iran Agree to Discuss Oil Prices Drop

Oil prices have slipped about 6% this week as traders actively de-risk ahead of confirmed talks between Washington and Tehran in Oman on Friday, Feb. 6.

Brent has drifted down to around $68.5, with WTI near $64.2, reflecting a market that’s beginning to price de-escalation rather than disruption.

The assumption now is that the White House will push for containment over confrontation, reducing the immediate risk to Iranian supply.

Initially, diplomatic talks between the U.S. and Iran had stalled just as tensions in the region escalated.

Reports of a U.S. aircraft carrier shooting down an Iranian drone in the Arabian Sea, followed by a deadly explosion at Iran’s strategic Bandar Abbas port, have forced traders to reprice risk.

During this period, the USOR token plunged, while global oil prices surged to an average of $65.

Add in a surprise 11.1 million-barrel draw in U.S. inventories, caused by winter storms disrupting production, and the oil rally looked like a textbook geopolitical supply shock.

Now, the softer tone is reinforced by a longer-term concern hanging over the market: the IEA’s warning of a sizeable global oil surplus in 2026. Even with a recent U.S. inventory draw of 3.5 million barrels, rallies are struggling to gain traction.

Even with recent daily gains, global crude prices are still roughly 9% to 11% lower Year over Year (YoY).

This serves as a reminder that the market is balancing short-term shocks against a broader backdrop of softer growth expectations and policy uncertainty

USOR Token Surges Amid the Narrative

USOR, however, is telling a different story. At the time of writing, the Solana-based token, which markets itself as “digital oil,” is up roughly 26% over the past 24 hours despite crude oil moving lower.

The bid has little to do with fundamentals and everything to do with positioning.

Some traders are treating the Oman talks as a binary event and are using USOR as a high-beta wager that negotiations fail or stall.

Others are simply reacting to mechanics. After collapsing nearly 90% in late January amid questions about legitimacy, the USOR token had become heavily shorted and deeply oversold, setting the stage for a reflexive squeeze once buying pressure returned.

USOR Price Prediction

At the time of writing, the USOR price wobbles around $0.0078. This contradicts its performance some days ago

Specifically, the USOR token has dropped 89.60% from its all-time high. But the recent bounce suggests it could be on track to erase some of those losses.

According to CCN’s findings, USOR is showing a short-term bounce on the 4-hour chart. But the bigger picture still looks like a relief move inside a broader downtrend.

The dashed descending trendline from the prior peak remains intact, and price remains well below the 20-EMA (around $0.010), which is providing overhead pressure.

Even with the bounce, USOR is trading near $0.0077—far beneath the higher Fibonacci zones (0.382 ~0.064 and above).

Volume also supports the idea of a bounce rather than a reversal. The recent push higher is not matching the heavier activity seen during prior distribution phases, suggesting buyers are only reacting to oversold conditions.

Momentum is improving, but not flipped. The Moving Average Convergence Divergence (MACD) is curling upward from deeply negative territory, suggesting selling pressure is easing.

Yet it’s still not a bullish reversal signal on its own.

For levels, the first area that matters overhead is roughly $0.0085, where the downtrend line and the 20-EMA cluster.

If the USOR token price gets rejected there, support sits around $0.0070, and the recent base is closer to $0.0065.

Meanwhile, a real bullish reversal would look like a sustained reclaim above the EMA with stronger volume, not just a single-bounce candle.

Risks and What Not

There’s also a narrative shift underway. Developers have leaned into language around “tokenized energy sovereignty,” and on-chain chatter points to accumulation by politically themed wallets, fueling speculation about implied backing or alignment.

None of that is verified, but in meme-driven markets, implication alone can be enough to move the price at least temporarily.

That’s where the risk lies. Despite the pump, there’s still no audited or legal proof that USOR is backed by physical oil or government reserves.

In practical terms, it wouldn’t take much selling to unwind the entire move.

The contrast says more about crypto than oil. Physical crude is trading diplomacy, inventories, and forward supply. USOR is trading sentiment, volatility, and hope.

For now, they’re moving in opposite directions, but only one of them is anchored to reality.

About the Author

Victor Olanrewaju

Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.

With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.

He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.

In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.

At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.

He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.

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