USDT Dominance - A Leading Indicator For Risk Appetite

USDT Dominance continues to trend down, indicating capital is continuing to rotate out of stablecoins and into risk-on assets. On it's face, this is a bullish sign that indicates we can continue to see broad price appreciation across the cryptocurrency markets.

Things to note and prepare for: USDT Dominance IS at a critical support level. USDT Dominance has reversed from this Demand Zone many times since it was established in the Summer of 2022.

Should USDT Dominance reverse here, it would indicate a capital rotation back into stablecoins and the beginning of a decline in prices across the cryptocurrency markets.

However, should USDT Dominance instead crash through this Support Area, expect big Jericho Candles erupting across your favorite tokens.

Recommendations: Continuing to hold long positions for swing/positional trades is fine, however consider trimming/closing positions upon a USDT Dominance reversal.