USDT Dominance Signals Potential Altcoin Rally
A bearish USDT dominance pattern mirrors October 2024, hinting at a possible altcoin surge.
- USDT dominance chart resembles pre-altcoin rally patterns
- RSI breakdown suggests declining strength in USDT hold
- Ascending broadening wedge points to bearish sentiment
Is History Repeating? USDT Dominance Mirrors October 2024
Crypto traders closely watching the market have spotted something interesting: USDT dominance is starting to show signs that we might be on the verge of another altcoin rally—much like what happened in October 2024.
At that time, a sharp decline in USDT dominance was one of the leading signals before altcoins exploded in value. Fast forward to now, and the technical indicators are lining up once again.
RSI Breakdown Suggests Weakening USDT Grip
One of the most telling indicators is the RSI (Relative Strength Index), which has already broken to the downside. This often indicates a loss of momentum in the current trend. In this case, it suggests that traders may be shifting away from stablecoins like USDT and back into more volatile assets—like altcoins.
When RSI trends break ahead of price action, it’s often a precursor to bigger moves. In this case, if price follows RSI (as it often does), we could see USDT dominance fall further—paving the way for capital to flow into altcoins.
Bearish Pattern: Ascending Broadening Wedge
Adding to the case is the presence of an ascending broadening wedge on the USDT dominance chart. This pattern, while rare, is typically bearish. It represents a market that’s climbing with uncertainty and wide volatility, often before a sharp correction.
For altcoin traders, this is a green light. A drop in USDT dominance usually means traders are converting their stablecoins into higher-risk tokens—often the fuel for massive rallies.
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