The chart shows a wave structure that projects a final leg drop toward the 3.07 percent zone soon
Volume indicators and support ranges now align around 3.87 and 3.36 percent for a possible shift
If price moves below the 4.00 percent level then dominance could slide near March 2024 lows fast
A new chart analysis suggests USDT dominance (USDT.D) may soon drop toward its March 2024 lows, currently marked near 3.82%. The analysis, shared on May 24, 2025, by trader BigMike7335, shows USDT.D at 4.58% and forming a significant corrective wave structure. The chart includes Fibonacci levels, Elliott Wave counts, and volume data, forecasting potential continued downside pressure in the coming weeks.
Source: X
Traders watching the crypto market closely recognize the importance of USDT dominance trends. A falling USDT.D can signal renewed strength in altcoins and general bullish conditions for crypto assets. Current projections based on Elliott Wave theory indicate USDT.D may drop to as low as 3.07% before any reversal.
The scenario presented outlines a corrective wave labeled as wave C, with sub-wave 5 targeting the area below 3.36%. If this pattern holds, traders may expect increased market liquidity shifting away from stablecoins, potentially energizing other digital assets
Key Support Levels and Technical Roadmap
The chart shows the formation of a complex WXY corrective structure, now entering its final leg labeled as wave C. This leg appears to be subdivided into five smaller waves, with wave 3 targeting 3.87%, already in progress. Wave 4 is expected to provide a brief relief bounce before the final drop in wave 5 toward historical support zones.
Volume analysis remains a crucial part of this projection. A marked decline in volume could reduce the accuracy of the Elliott Wave count. However, the volume indicator currently confirms a bearish continuation as the dominance moves lower from the 5.62% high.
The Fibonacci levels drawn on the chart include 2.618 at 3.87%, 3.618 at 3.36%, and 4.236 at 3.07%. These act as potential bounce or reversal zones, based on historical reactions. The final low could coincide with heavy altcoin inflows, pushing total crypto market capitalization higher if USDT.D breaks through each level sequentially.
Market Structure Signals and RSI Positioning
The Relative Strength Index (RSI) indicator at the top of the chart shows bearish momentum but may be approaching oversold conditions. RSI divergence could indicate temporary pullbacks, especially as wave 4 attempts to form. However, the broader trend still favors a deeper move before stabilization occurs.
Another component of the analysis involves the volume profile visible range (VPVR), showing strong interest at the 4.0% and 3.8% dominance levels. These levels could become battleground zones between bulls and bears in the coming sessions. Sustained closing candles below these levels may confirm the move toward March 2024 lows.
The clear channel breakdown, supported by Fibonacci and RSI, presents a strong technical case. Elliott Wave theory, combined with multiple indicators, gives traders a roadmap for anticipating moves before they happen. The only question now is: Will USDT dominance reach the projected 3.07% before sentiment shifts again?
Trading Outlook and Sentiment Shifts
The trader’s analysis suggests a key inflection point in the stablecoin market share landscape. Lower dominance often indicates that capital is flowing into riskier assets like Bitcoin, Ethereum, and altcoins. This trend historically precedes major rallies in the broader cryptocurrency market.
As of the latest reading, USDT.D remains below key moving averages, increasing the likelihood of sustained downside continuation. Technical traders and institutions alike may watch closely for breakdown confirmation at 3.87%, the 2.618 Fibonacci level.
If the C wave completes as projected, traders might expect altcoin rallies and increased spot volume across major exchanges. Market structure, combined with sentiment analysis, points toward a pivotal moment for crypto traders positioning ahead of June 2025.
