USDT dominance breaks trendline on weekly timeframe, reflecting similar structures seen in 2021 and 2024.
Analysts observe potential for dominance to fall below 3.50%, a level linked to past altcoin rallies.
$1B in USDT minted recently, but the dominance structure remains bearish despite added liquidity.
A major technical development is unfolding in the USDT dominance (USDT.D) chart, where a clear trendline break has now occurred on the weekly timeframe. According to market watchers, the pattern closely resembles bearish structures from 2021 and 2024, both of which preceded substantial capital shifts into altcoins.
As shown in the latest weekly chart data, USDT.D has already exited its upward channel, and the current decline marks the early stages of a potential wider move lower. Historical comparisons suggest that if this decline continues, altcoins may see increased liquidity inflows.
Break of Trendline and Liquidity Divergence Deepen Bearish Outlook
The most notable change in the chart is the breakdown of the rising trendline, followed by a swift bearish continuation. This shift aligns with two previous cycles—2021 and 2024—where similar descending patterns led to multi-month declines. Observers note that dominance currently sits under 4.50%, with the 3.50% level now emerging as a key threshold. If dominance falls below that level, it would match conditions from prior cycles when capital rapidly exited stablecoins and moved into volatile assets. This level has become a key reference for potential market rotation.
Source: (X)
Despite the minting of approximately $1 billion in new USDT recently, the dominance chart remains tilted to the downside. Analysts argue that while stablecoin supply increased, the market’s structural behavior has not adjusted upward.
Instead, dominance continues to trend lower, with no significant reaction to the added liquidity. This divergence between supply increase and dominance behavior adds further weight to the bearish setup. Historical data suggests that dominance drops often precede altcoin rallies, although timing varies by market context.
USDT Dominance Chart Mirrors Past Cycles
Visual analysis of the USDT.D chart confirms repeating descending structures across different periods. The 2021 and 2024 segments both led to sharp drops in dominance, eventually bottoming out before new phases began.
The 2025 segment now shows a similar arc, with price action weakening after a short consolidation period. Should this trend remain intact, the market may experience another leg down in dominance, opening room for alternative digital assets to absorb increased volume. The next few weeks may determine the direction of this unfolding pattern.