USTD/USD is trading below 1.000. As the most important stable coin in the cryptocurrency world, Tether proclaims that it functions as a solid fundamental element within for digital assets allowing cryptocurrency businesses to transact USDT/USD with other cryptos to lock in value. However during the past month with the destruction of TerraUSD and its oblivion from the world of stable coins, questions have arisen regarding all the remaining stable coins including Tether.
USDT/USD though appears rather intriguing from a speculative viewpoint because it has found it difficult to achieve the 1.00 USD equilibrium on a steady basis since the 11th of May. On the 12th of May USDT/USD sank momentarily to a value of nearly 0.93960000 when fear was rampant in the cryptocurrency world, as a firestorm of selling engulfed the broad market and concerns about stable coins climaxed as TerraUSD failed.
From a speculative consideration USDT/USD is difficult to trade because a lot of leverage will likely be needed by a day trader to get a worthwhile result if they do not have hundreds of thousands of dollars in their account to use, even if the trade moves in the intended direction the trader wants. Entry price orders must be used to make sure fractional differences are fulfilled and there are no unexpected price fills. Also, Tether moves as slow as a snail, so fast results cannot be anticipated. Patience and the ability to withstand the fatigue of transactions costs via overnight trading of USDT/USD would have to be needed too.
Simply put if a speculator wants to sell USDT/USD because they think the so called stable coin can fall further in value, they might be right, but the trader may not have enough time to make the trade profitable because they will likely have to give up before a positive result can be made. However, if a trader has deep pockets, time and understands the costs involved in speculating on USDT/USD there could be an opportunity to wager on further downside momentum. Folks, this is why hedge funds are the community who is mostly trying to short Tether, they have the money and the time to pursue this option.
Traders who cannot actually speculate on USDT/USD however can use Tether to their advantage. USDT/USD serves as an interesting barometer of the broad cryptocurrency market. The inability of Tether to seriously trade near 1.00000000 in the past few weeks is rather startling and indicates the bearish market has not disappeared in cryptos. As long as USDT/USD remains under the 1.00000000 ratio, it may be a sign selling will remain the stronger force in the digital asset world.
Current Resistance: 0.999371000
Current Support: 0.99890000
High Target: 0.99960000
Low Target: 0.99850000
