To determine what stage the market is in, we really like to look at the dominance indicators of all popular stablecoins.
The data showed the "health" of the market, that is, whether growth in the market occurs organically or artificially.
So, if the dominance of stablecoins decreases, then these stablecoins go into the market for the redemption of cryptocurrencies$BTC $ETH $BNB
Likewise, the opposite is true: if dominance increases, it means traders are selling their cryptocurrencies.
At the beginning of the post there are charts of all popular stablecoins on the market:
1️⃣ USDT.D
Dominance chart of the main stablecoin USDT, which has the largest weight among all other stablecoins.
This chart confirms the continuation of the bullish cycle in the cryptocurrency market, as the USDT dominance chart is trading below the long-term moving averages.
To understand, in October 2023, this chart broke through long-term moving downwards and it was on these dates that the Bitcoin chart began to grow without rollbacks downwards.
A couple of weeks ago, this chart tested long-term moving averages and a medium-term downward trend from below. After which it began to decline again.
The USDT dominance chart is moving within the descending expanding wedge pattern and is now near the upper border of the pattern.
This means that the potential for this stablecoin to reduce its dominance is still very high and the market is only at the initial stage of growth in the medium term.
2️⃣ USDC.D
Chart of dominance of the second most important stablecoin on the market. It is this stablecoin that the US SEC is actively promoting.
Here the situation is more clear. The USDC dominance chart is moving clearly within the descending channel.
The USDC dominance, like the USDT dominance, tested the long-term moving averages and the medium-term trend from below.
The downside potential of this stablecoin is also very high, as it is located just below the upper boundary of the channel.
3️⃣ DAI.D
And the top three among stablecoins is closed by the algorithmic stablecoin DAI.
It was with the same principle of operation that the stablecoin previously provided the scam coin LUNA
Since then, people seem to have completely lost confidence in such stablecoins, so DAI’s dominance continues to decline for the third year in a row.
However, this stablecoin, like others, officially entered the bearish stage in October 2023, opening the way for the growth of the entire crypto market.
The DAI stablecoin dominance chart repeats the history of the last two, indicating an imminent continuation of a stronger rally in the market.
Moreover, it seems that this stablecoin will soon be of no interest to investors at all, which is already evident from its ever-falling dominance.
📊 Result:
Charts of the dominance of the most popular stablecoins indicate an imminent continuation of the rally in the cryptocurrency market.
Moreover, judging by the dynamics, the next wave of growth will be one of the strongest, which is confirmed by many other facts described by us in previous posts.
It is for all these reasons that we have been actively purchasing and will continue to purchase the market
Only the most patient will be able to take all the cream from the market, and for this you need to have the courage to buy out declines without succumbing to general panic and stick to your trading strategy.
🤟 Did you like the review or want to better understand cryptocurrencies and technical analysis?
✔️ Then subscribe to the channel and like
➡️ #cassius_trade Look for us on Pavel Durov’s social network. Be sure to subscribe!
#dyor #crypto2024 #bullrun #Stablecoins