The post Crypto Market Analysis – Stablecoin Dominance Rejection Suggests Risk On appeared on BitcoinEthereumNews.com.

The cryptocurrency market is experiencing a pattern of technical movements that we have witnessed before and could be a major shift in Capital Flow. Stablecoin dominance has once again been rejected from its resistance. Ash Crypto, a market analyst, stated that this is the opposite of the similar price action that was witnessed in August 2024 and April 2025. Understanding Stablecoin Dominance as a Market Indicator Stablecoin dominance measures the proportion of the total cryptocurrency market capitalization held in stablecoins such as USDT, USDC, and DAI. This metric is a critical indicator for market sentiment, essentially functioning as a reverse indicator for risk appetite in the cryptocurrency market. Investors are shifting away from volatile Bitcoin and Altcoins to stable assets, indicating a risk-free environment. In contrast, the decline of stablecoin dominance suggests a shift in capital towards riskier crypto assets, potentially paving the way for a wider market rally. Last year witnessed a third rejection from resistance in under eighteen months, creating a remarkable pattern. The descending channel formation since July 2023 has consistently exerted considerable pressure on stablecoin dominance, resulting in these crucial levels. Historical Context and Repeating Patterns August 2024 marks a crucial moment in the crypto market cycle. Stablecoins are strengthening their role in the crypto market: CoinGecko’s August 2024 report reveals they account for approximately 8.2% of the total market value. The market for fiat-pegged coins has grown to a remarkable $161.2 billion. This was not smooth sailing, however, as heightened volatility hit the market while the dominance of stablecoins exhibited some tough resistance. The subsequent rejection led to a renewed interest in Bitcoin and altcoins, resulting in the broader market recovery that characterized the latter part of 2024. Market data from Q-1 2025 shows Ethereum stablecoin transfer volumes rising, with USDC leading at almost $585…

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Filed under: News - @ November 25, 2025 12:25 am