JAN 2, 2024
Stablecoin dominance can be used to understand market sentiment, trends, and patterns.
When examining USDC.D+USDT.D and TOTAL (crypto Total Market Cap), you'll observe an inverse correlation. When Stablecoin dominance decreases, TOTAL tends to increase, and vice versa. Typically, this occurs because, in situations where TOTAL is declining, individuals tend to sell off crypto assets and shift towards stablecoins.
Historical data suggests the potential onset of a Bull Market within this zone. However, it's crucial to acknowledge the possibility of a rebound for USDC.D+USDT.D from the 233 MA, indicating a potential distribution phase. Continued monitoring is necessary for a precise understanding of the market direction.