USDT Dominance Weekly UpdateUSDT dominance continues to trend downward within a clearly defined descending channel. Recent price action shows a rejection from the upper boundary near the 100-MA, reinforcing the potential for further downside.
Current Market Dynamics
Descending Channel:
USDT's dominance remains in a declining channel, characterized by consistent lower highs and lower lows. This signals a weakening trend as market participants shift toward riskier assets.
100-Moving Average (Purple Line):
A breakout attempt above the 100-MA was met with rejection, underscoring strong resistance at this level.
Bearish Momentum:
A sharp downward projection (illustrated by the brown arrow) indicates the potential for further decline in dominance over the coming sessions.
Key Levels to Watch
Support Levels:
Immediate Support: 3.65%–3.70% (lower channel boundary).
Critical Support: 3.50% (long-term key level).
Resistance Levels:
First Resistance: 4.00%–4.05% (200-MA).
Key Resistance: 4.20% (upper channel boundary).
Outlook
Bearish Scenario:
A break below the 3.65% support could trigger a deeper drop toward the 3.50% level.
Bullish Scenario:
A breakout above 4.05% and the 100-MA would invalidate the bearish outlook, potentially leading to a retest of the 4.20% resistance zone.
Conclusion
The technical setup highlights strong bearish momentum in USDT dominance. However, key levels will determine the next direction. Traders should remain vigilant for a decisive breakout or breakdown in the coming sessions.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your research and consult a financial advisor before making investment decisions.
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