coinedition.com
Amid the dull state of the crypto market, with most coins largely falling in the red zones, the popular YouTube channel “Crypto Banter” has argued, based on a crucial indicator, that the market is still bullish.
The supporting indicator that the crypto analyst banked on was the stablecoin to volatile token metric. While acknowledging the presence of various factors influencing market dynamics, the host stressed the significance of carefully observing the USDT dominance chart.
Notably, the USDT dominance chart serves as a crucial metric revealing the ebb and flow of funds between stablecoins and the broader crypto market. The host pointed out that despite minor fluctuations, the USDT dominance has not yet broken through a critical resistance level. This observation is seen as a key factor in predicting potential shifts in investment behavior and favorable spot entry.
Furthermore, the crypto analyst explained that the USDT dominance chart reflects the movement of dollars in and out of the crypto market. In particular, when investors move their funds from USDT into altcoins and other assets, it contributes to market growth. Conversely, when the dominance chart shows an upward movement, indicating a shift from assets to stablecoins, it may suggest a potential retracement.
The analysis highlighted that the absence of a breakthrough in USDT dominance resistance is a positive signal for the market. According to the host, this implies there is still untapped potential for more money to flow into the crypto space.
As a result, the host asserted that there is reason to remain optimistic until there is a decisive break above the resistance level on the USDT dominance chart. Moreover, he urged market participants to keep an eye on tokens, including Bittensor (TAO), which has seen a 13% uptick at the time of reporting. Others include Klaytn (KLAY), BLUR, BEAM, Fantom (FTM), and Chiliz (CHZ).
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