Crypto: Is USDT Falling? Are Altcoins Ready to Shine?

The crypto universe never lacks surprises. As USDT begins to waver, an opportunity arises for altcoins, those alternative assets that often wait for their moment of glory. But could a simple drop in Tether’s dominance really trigger a new “altcoin season”? Let’s delve into the indicators and signals that suggest this possibility.

USDT: Signs of Fatigue Hiding Opportunities?

USDT’s position in the crypto world is often perceived as immutable. Stable, reliable, it is one of the market’s pillars. However, even titans can show signs of weakness.

Recently, a respected crypto analyst, Moustache, highlighted an intriguing pattern on the Tether dominance chart: an “ascending broadening wedge.” At first glance, this might seem technical or even mundane. Yet, this pattern is often a harbinger of bearish turbulence.

#Altcoins

Ascending broadening wedges rarely end well.
In most cases they're bearish tbh.

USDT. Dominance has been in this pattern for over 6 months.
-This is only a bearish backtest

After that we will see the long awaited Altcoinseason imo.

Make the most of it. pic.twitter.com/XfBkTOkhBR

— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) October 2, 2024

What is fascinating here is the interpretation that can be drawn. A break in USDT’s dominance could actually signal a redistribution of capital towards altcoins.

Imagine a dam holding back billions of dollars, slowly starting to crack. This capital, currently locked in Tether, might well flood the altcoin market, propelling them into the spotlight.

The market has already shown warning signs. In March 2024, the capitalization of altcoins reached peaks, flirting with 1.27 trillion dollars, before gradually descending. But isn’t this descent the calm before the storm? The decline in USDT’s dominance could well be the trigger.

Solana: A Faltering Giant or a Catalyst for Altcoins?

While USDT wavers, another player in the crypto market, Solana, is experiencing difficult times. A textbook case that deserves attention.

Indeed, Solana has seen its value plunge by 6.2% in a week, a decline further accelerating with an additional drop of 4.2% in just 24 hours. But where it really hurts is the dramatic fall in active addresses on its network, from 5 million to about 1.3 million.

This decline raises 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 consider this fall as a sign of generalized weakness in altcoins, but it could also indicate a rebalancing. Are capitals fleeing Solana to redirect towards other promising projects? This scenario is far from improbable.

The open interest for Solana, that is, the volume of ongoing futures contracts, has also fallen, dropping to 2.27 billion dollars. This decrease reflects temporary disinterest, but it could also indicate that speculators are repositioning elsewhere, anticipating an underlying movement in favor of other altcoins. Meanwhile, a famous trader spots an alarming bearish signal for Bitcoin.