Stablecoin dominance nears 13 percent as altcoins falter

Stablecoin dominance (USDT/USDC) is climbing and nearing a critical 13% threshold, raising short-term risk for altcoins, according to technical analyst MooninPapa. Bitcoin staged a modest bounce but failed to clear immediate resistance after touching $78,200, while Ethereum shows weak RSI readings and sell-side pressure. Several altcoins posted sharp, short-lived rallies (e.g., LIT +70% in four days, NEAR and ZEC moves) but volume and on‑balance‑volume metrics are weak, prompting the analyst to scale into short positions on select names. MooninPapa warns that if stablecoin dominance rises further (a ~25% move from current levels to reach ~13%), history suggests accelerated altcoin pressure and potential sharp market moves, as seen in a 46% dominance spike in late January that accompanied a BTC drop.