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HomeNewsUSDT Dominance Drops: Are Your Favorite Altcoins About to Soar?

USDT Dominance Drops: Are Your Favorite Altcoins About to Soar?

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  • Technical analysis predicts bullish altcoin market; ascending broadening wedge in USDT suggests potential capital flow to altcoins.
  • Despite bullish technical signals for altcoins, fundamental data like Solana’s performance remain misaligned with optimistic forecasts.

Recent analysis of USDT (Tether) market dominance suggests potential upcoming shifts in the altcoin sector. Financial analysts have noted patterns that could forecast an increase in altcoin trading activities, referred to colloquially as “altcoin season.” 

The overall altcoin market, valued at $1.27 trillion earlier this year, currently shows a general downward trend with recent market cap evaluations dipping to $872 billion.

The crypto market’s cyclical nature exhibits these fluctuations, where Tether’s rising dominance often precedes altcoin value surges. Analysts highlight the formation of an “ascending broadening wedge” in Tether’s market behavior. This technical pattern, characterized by expanding volatility with rising prices, traditionally suggests upcoming market corrections.

The implications of such a pattern typically point to increased market activity and possibly a redistribution of investment from Tether into various altcoins, potentially boosting their market values. 

This analytical perspective was detailed by a crypto market analyst known as Moustache on platform X. Moustache’s insights into Tether’s market behavior provide a basis for anticipating a bullish phase for altcoins.

Turning to specific altcoin analyses, Solana (SOL) serves as a pertinent example. Currently, Solana exhibits a decline in both valuation and operational metrics. The price of Solana has decreased by 6.2% over the last week, with further reductions in the past 24 hours.

Present trading prices place SOL around $141.51, signaling a bearish market trend.

Furthermore, Solana’s network engagement metrics such as active addresses have significantly reduced, indicating decreased user activity and lowered transaction volumes.

Active Wallets
Source: Solscan

From over 5 million active addresses last month, the numbers have plummeted to approximately 1.3 million currently.

sol-futures-open-interest-usd
Source: Coinglass

Market interest in Solana as reflected by open interest in futures and options has also seen a reduction. The open interest has declined by 7%, now valued at around $2.27 billion. This metric’s decrease highlights diminishing trader engagement and speculative interest in Solana.

As of today, Solana (SOL) is trading at $137.29, down 2.05% for the day. Over the past month, it has seen a slight increase of 1.73%, but in the last six months, the price has dropped by 21.31%.

Despite these short-term fluctuations, Solana has gained an impressive 34.99% year-to-date and 481.20% over the last year.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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