Yigit Taha OZTURK 
As we anticipated in our previous analysis, Tether Dominance (USDT.D) has broken its upward trend, pulling back sharply by nearly 4% to around 5.30%. This move has sparked optimism across the crypto markets, as capital appears to be shifting from stablecoins into riskier assets.
Technically, this breakdown is significant. A decline in Tether dominance often signals increased investor appetite for altcoins and higher volatility assets. The price structure clearly shows that the previously strong uptrend has lost momentum, potentially opening the door to a short-term bullish window for the overall market.
Critical Target: Eyes on 5.16% Support
The next target zone lies at 5.16%, a historically key support aligned with previous horizontal levels and moving average confluences. The drop was supported by volume, increasing the likelihood of a continued downward correction in USDT.D.
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However, traders should proceed with caution. False breaks are common in dominance charts, and any quick rebound from this level could lead to market-wide pullbacks. Partial profit-taking around this zone could serve as a smart risk management tactic, especially for those in leveraged positions.
As always, momentum indicators and mid-term trendlines should be monitored closely to validate the strength of this bearish shift.
Green Market, But Stay Alert
Despite the drop in Tether dominance, the crypto market has not only turned green but has also shown renewed volume strength. Bitcoin and altcoins alike are experiencing a surge in buying pressure, seemingly fueled by the lower USDT.D level.
Still, it’s too early to confirm a long-term bullish reversal. Market participants should remember: not every drop leads to a sustainable rally. A short-term bounce in USDT.D could quickly shift sentiment, triggering corrections across volatile coins.
For now, momentum favors the bulls — but smart positioning and quick reactions are key.
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