The crypto universe never lacks surprises. As USDT begins to falter, an opportunity emerges for altcoins, alternative assets that are often waiting for their moment to shine. But could a simple decline in Tether’s dominance really spark a new “altcoin season”? Let’s dive into the indicators and signals that hint at this possibility.
USDT: Signs of fatigue that hide opportunities?
USDT's place in the crypto world is often seen as immutable. Stable, reliable, it is one of the pillars of the market. However, even titans can show signs of weakness.
Recently, respected crypto analyst Mustache highlighted an intriguing pattern on Tether's dominance chart: an “ascending widening wedge.” At first glance, this might seem technical, or even trivial. However, this pattern is often the harbinger of bearish turbulence.
What is fascinating here is the interpretation that can be drawn from it. A break in USDT dominance could actually herald a redistribution of capital towards altcoins.
Imagine a dam holding back billions of dollars, which would slowly begin to crack. This capital, now locked in Tether, could well flood the altcoin market, thus propelling them to the forefront.
The market has already shown warning signs. In March 2024, the capitalization of altcoins reached new heights, flirting with $1.27 trillion, before gradually falling back down. But wouldn’t this descent be the calm before the storm? The decline in USDT dominance could well be the trigger.
Solana: A wobbly giant or a catalyst for altcoins?
While USDT is faltering, another player in the crypto market, Solana, is having a tough time. A textbook case that deserves attention.
Indeed, Solana saw its value plunge by 6.2% in one week, a decline which accelerates further with an additional drop of 4.2% in just 24 hours. But where the problem really lies is the dizzying drop in active addresses on its network, going from 5 million to around 1.3 million.
This decline poses a simple question: Is Solana collapsing or are we witnessing a market restructuring that will, paradoxically, benefit altcoins as a whole?
It would be easy to view this drop as a sign of widespread altcoin weakness, but it could also indicate a rebalancing. Is capital fleeing Solana to redirect towards other promising projects? This scenario is far from improbable.
Open interest in Solana, that is, the volume of outstanding futures contracts, also fell to $2.27 billion. This drop reflects a temporary disinterest, but it could also signal that speculators are positioning themselves elsewhere, anticipating a fundamental movement in favor of other altcoins. Meanwhile, a famous trader spots a worrying bearish signal for Bitcoin.
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