#USDT dominance essentially illustrates how much capital is sitting on the sidelines rather than being actively deployed in crypto trades.

Currently, it is hovering around 6.3%, a level that has historically been a major pain point. Every time the metric approaches this area, it struggles to climb higher.

Recently, it pushed upward within a rising channel, but that momentum did not last. It broke down from that channel and is now stalling beneath a significant resistance zone between 6.6% and 6.7%.

This is a clear indication that buyers are losing strength.

If USDT dominance were truly strong, it would have already broken above that area; instead, it failed to do so.

The RSI confirms this story as well. It rolled over from the mid-zone and broke its own minor uptrend.

That usually signals that momentum is shifting downward, not upward.

Consequently, even though the price remains near the top, the underlying strength is fading.

If this drops and closes below 6.24%, it will likely slide much lower, potentially toward 5% or even the 4% area.

When that occurs, it usually indicates that money is moving out of stablecoins and into altcoins. That is typically when alts tend to wake up.

The only scenario that would invalidate this view is if USDT dominance suddenly pushes hard above 6.7% and holds there. Right now, that seems unlikely.

In simple terms, USDT dominance looks tired at these levels, and if it starts falling, it is a positive sign for altcoins getting some room to run.

Crypto Coach