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A closely followed analyst says that the total market cap of the five largest stablecoins has reached heights never seen before.
Crypto trader Ali Martinez tells his 131,400 followers on the social media platform X that the top five dollar-pegged crypto assets by market cap have a total valuation of $204.7 billion.
The five largest stablecoins in the market include Tether’s USDT, Circle’s USDC, USDS, Ethena’s USDe and DAI, according to data from CoinGecko.
Source: Ali Martinez/X
A soaring stablecoin market cap suggests more buying power on the sidelines. It may also suggest that investors are unloading their crypto assets in favor of dollar-pegged coins.
Looking at Ethena (ENA), a decentralized protocol designed to provide a crypto-based alternative to the traditional banking system, Martinez says the altcoin is flashing a bullish signal based on the Tom DeMark Sequential indicator.
Traders use the TD Sequential Indicator to predict potential trend reversals for tokens based on the closing prices of their 13 previous bars or candles.
“Ethena ENA is flashing bullish signals! A buy signal from the TD Sequential indicator on the weekly chart, combined with a hammer candlestick at key support, suggests a strong rebound could be ahead.”
Source: Ali Martinez/X
A hammer candlestick pattern is typically viewed as a bullish reversal signal with the candle wick indicating demand.
At time of writing, ENA is trading for $0.44.
The trader adds that the decentralized oracle network Chainlink (LINK) and the modular blockchain Celestia (TIA) are also showing signs of a potential rebound based on the TD Sequential indicator.
At time of writing, LINK is worth $14.30 and TIA is trading for $3.11.
