- Repeated tests of the 4.0% support level with weakening bounces suggest growing bearish pressure and limited consolidation room.
- The descending trendline from mid-2023 to mid-2025 and reduced bounce amplitude point to fading stablecoin dominance strength.
- Despite bearish dominance trends, USDT maintains strong utility, processing over $1 trillion in on-chain volume per month.
Tether (USDT) dominance is now retesting a significant horizontal support zone near the 4.0% level. This critical area has historically marked a turning point for market momentum. The chart, structured on the weekly timeframe, highlights a series of progressively lower highs since late 2023.
At the same time, repeated tests of the horizontal base suggest increasing pressure toward a potential breakdown. Analysts are closely monitoring this level as it could redefine short-term market structure.
USDT Dominance Near Breakdown Zone
A descending trendline caps each lower high from mid-2023 through mid-2025. The most recent peak failed to breach the 6.0% level, reinforcing the trend’s strength. Each reversal from the trendline has occurred with reduced amplitude, pointing to a weakening bullish grip on stablecoin dominance. Volume analysis indicates consistent selling activity during each rejection phase. The pattern appears compressed, with limited room for additional consolidation within the wedge formation.
The horizontal support between 3.9% and 4.1% has been tested five times since early 2022. Recent price action places USDT dominance just above this level once again. Notably, each revisit to this area has triggered short-term bounces. However, the strength of these recoveries has diminished. The latest price movement features a sharper decline into support, compared to prior consolidative descents. This shift highlights increased pressure from altcoin inflows against stablecoin strength.
Breakdown Probability Grows as Compression Tightens
As price compresses within the narrowing structure, focus turns to the potential breach of 4.0%. A confirmed weekly close below this point would invalidate the support structure in place since 2022.
The absence of higher lows and weakening bounce reactions adds weight to bearish pressure. Though the trendline remains intact, the current configuration implies reduced resilience unless a sharp reversal develops near-term.
USDT Monthly On-Chain Volume Surpasses $1 Trillion
Tether’s USDT has reached a major milestone , averaging over $1 trillion in monthly on-chain transfer volume, according to recent data. The stablecoin’s usage has surged significantly since 2020, making it the most transacted digital asset across blockchains. The chart shows exponential growth, with current volumes eclipsing most national GDPs on a monthly basis.
The success was verified by Tether CEO Paolo Ardoino, who further solidified the position of the USDT as a provider of global liquidity in the crypto market. Nonetheless, regardless of the dynamic market circumstances, USDT remains the most widespread and utilized stablecoin. This record is notable in its core position of digital finance infrastructure and crypto settlement layers.
