USDT Dominance – Potential Wave F Reversal?

We are tracking a NeoWave Diametric formation (7-leg corrective structure: A–B–C–D–E–F–G) on the USDT Dominance chart. Recently, price reached the projected resistance zone of wave E, and early signs of reversal are emerging.

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🧠 Structural Analysis:
• The structure has developed with alternating legs in price and time, consistent with the symmetrical diametric rules.
• Wave E has likely completed, reacting from prior supply and resistance.
• A pullback from here can mark the beginning of Wave F, which in diametrics tends to retrace significantly toward the internal balance of the structure.

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🔍 What to Watch:
• Confirmation of bearish intent via a break of internal supports or lower-timeframe BOS.
• Possible retracement targets: 4.2% → 3.95%, depending on momentum.
• A decisive break below 4.00% would reinforce the wave F scenario.

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⚠️ Implications for the Crypto Market:

A drop in USDT Dominance typically indicates rotation into risk assets (alts/BTC/ETH). However, context matters — if the drop happens during a general market sell-off, it may reflect risk-off unwinding into fiat, not risk-on rotation.

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🔄 Strategy Note:
• Avoid premature shorts or longs; wait for structure to confirm.
• Watch for smart money traps (e.g., false breakouts or liquidity grabs) around the recent highs.

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📌 This is a high-risk zone for entering long USDT.D — be cautious with stablecoin bias.

📊 Analysis by CryptoPilot – Precision through structure.