Stablecoin Dominance Reaches New Heights, Threatening Altcoins

A recent surge in stablecoin dominance has raised concerns about the broader crypto market, sparking fears of a potential downturn for altcoins. Bitcoin's daily candle printed a second TBT bearish divergence, with RSI already cutting below recent pullback lows from Wednesday and the April 29 pivot.

The increase in stablecoin dominance above the TBO fast line at 10.213% has been accompanied by a decrease in altcoin breadth, with several names in MooninPapa's watchlist remaining vulnerable unless bulls reclaim momentum quickly. The bear flag on Ethereum is also starting to move, with a target around 2125 or a specific support fan level in play before any meaningful bounce could form.