• The USDT has maintained its peg at $1, indicating that the market participants are slowly ditching other cryptos for stablecoins and hence the dominance of the stablecoins could rise soon.
• After undergoing significant pressure, USDT dominance rebounded from a crucial support level, triggering a recovery.
• Bitcoin price is assumed to drop back below $22,000 while altcoins may drop by more than 8% to 10%.
USDT Dominance Rising High
The trading volume spiked finely during early trading hours as stablecoins like USDT and USDC appeared to be under significant bullish influence. The USDT maintained its peg at $1, which indicates that the majority of crypto volume may have shifted to stablecoin. This has caused an increase in the dominance of these coins and pushed down other crypto prices.
Dominance Rebounding From Crucial Support
USDT dominance was slashing hard since the beginning of 2023 but soon began to form constant higher highs and lows. It faced rejection at resistance at 7.27% before dropping to 6.45%. After marking bottoms, the dominance rebounded and is on way to testing resistance again.
Price Predictions
The rising dominance of stablecoins suggests that consolidation will continue for some time ahead. As a result, Bitcoin price is predicted to drop back below $22,000 while altcoins may drop by more than 8% to 10%.
Conclusion
The increasing demand for stablecoins like USDT and USDC indicates that consolidation in cryptocurrency markets will continue in near future. This could lead Bitcoin price dropping below $22,000 while altcoins could plummet by up to 10%.
Author Bio: Sahana Vibhute
A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space with research into minute occurrences bringing new insights lie within her prime focus of task
