USDT-Dominance Swings as Analyst Predicts Imminent Altseason

In recent analyses, a trader with the Twitter handle @el_crypto_prof has identified two key indicators that have historically preceded an altcoin surge: the emergence of a head and shoulders pattern and a heavily overbought Stochastic Relative Strength Index (Stoch RSI). Over the past three years, this combination has paved the way for the altcoin season on four out of five occasions.

According to the analyst, with its characteristic “W” shape, the head and shoulders pattern has consistently served as a prelude to a market transition from stablecoin dominance to a broader altcoin rally. Market observers have identified the formation of this pattern, indicating a weakening of the USDT-Dominance (Tether dominance) and a potential shift in investor sentiment.

Simultaneously, the Stoch RSI has soared into heavily overbought territory, further fueling expectations of an alt season. This technical indicator measures the relative strength index within a specific timeframe, and its extreme levels indicate potential market reversals. Such instances have preceded altcoin surges, generating substantial returns for astute investors.

The confluence of these indicators suggests that now may be an opportune moment to consider diversifying cryptocurrency portfolios. As sentiment towards most altcoins currently dwells in the basement, the stage appears set for a potential resurgence, making it an exciting time for investors seeking alternative avenues for growth.

In another recent development, Tether, a leading stablecoin issuer, has generated 1 billion USDT tokens on the Ethereum blockchain to replenish its inventory. This action has sparked speculation that the increased supply of USDT could drive up demand for the cryptocurrency. However, Tether’s Chief Technical Officer, Paolo Ardoino, has clarified that the primary objective of minting additional USDT tokens is facilitating chain swap functionalities rather than directly stimulating demand.

Disclaimer: This analysis’s views, opinions, and information are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.