USDT dominance is breaking up again. What does it mean?
Investors, I checked the latest chart of USDT dominance.
Technically, it has broken above the descending trendline, and that immediately gets the market nervous — because rising stablecoin dominance is usually interpreted as fear, rotation into cash, and potential downside pressure on crypto prices.
But here’s the key point:
over the past year, these “breakouts” have already happened — and most of them turned out to be fakeouts.
The structure shows the same pattern every time: dominance comes up to the trendline, spikes… and then rolls back down. And if the same thing happens now — if dominance starts dropping again — that would signal a solid relief rally across the market.
Not a trend reversal, not a new cycle — but a normal, healthy bounce that many traders have already given up on.
What to watch:
• confirmation of dominance staying below the 5% zone
• weak follow-through on the breakout
• BTC’s reaction in the next few days (it often leads dominance)
If USDT dominance turns down, it opens the door for a near-term rebound in crypto.
If it holds higher — the market may feel more pressure.
To me, it looks more like another attempt to shake out the crowd.
But let’s see what actually happens — the cycle will sort it out.
