Crypto News Today: Bearish Clouds Haunt the Crypto Space-USDT Dominance Rising High
After undergoing significant pressure, the USDT has maintained its peg at $1. The trading volume spiked finely during the early trading hours. Stablecoins like USDT, and USDC have appeared to be under significant bullish influence as the majority of the cryptos consolidate.
The raised volume with a maintained peg indicates that the market participants are slowly ditching other cryptos for stablecoins and hence the dominance of the stablecoins could rise very soon.
The USDT dominance was slashing hard since the beginning of 2023 as the crypto space geared up to lay down a fine upswing. However, the levels have flipped as the dominance rebounded from the crucial support, triggering a recovery. The rising dominance of stablecoins points toward the prevailing consolidation to continue for some more time ahead.
The USDT dominance was trading along the lower trend line until the start of February but soon began to form constant higher highs and lows. The levels surged high by facing rejection at the resistance at 7.27% and dropped to 6.45%. After marking the bottoms, the dominance rebounded and is on the way to testing the resistance again.
In such cases, the popular tokens are believed to remain under an acute bearish trend as nearly half of the crypto volume may have shifted to stablecoin. Therefore, the Bitcoin price is assumed to drop back below $22,000 to reach $21,900. Besides, the altcoins may also drop by more than 8% to 10% at the same time.