USDT dominance (USDT.D) is a metric that measures the percentage of the total cryptocurrency market cap that is held in Tether (USDT). It's a key indicator of market sentiment and potential price movements.
Here's what USDT dominance can indicate:
Investors moving funds
A decline in USDT dominance may indicate that investors are moving funds out of stablecoins and into other cryptocurrencies. This could indicate a bullish sentiment for other cryptocurrencies.
Investors moving into USDT
If USDT.D breaks above the horizontal supply zone and the 200MA resistance, it could signal a more cautious market sentiment. Investors might be moving into USDT as a safe haven.
Potential for further price increases
A significant buying pressure could indicate that there is potential for further price increases.
USDT is a stablecoin, which is a blockchain-based currency that is pegged to the value of a fiat currency. USDT's issuer claims that USDT is backed by bank reserves and loans.