USDT/USD remains under its spoken 1.00 USD mark, and its inability to achieve this level for a while may be igniting speculative considerations.

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 11^th of May. On the 12^th 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

USDT/USD has traded in its typical tight range the past five days, achieving a high on the 1^st of April and then having reversed slightly lower

USDT/USD looks like it remains in its regular tight range as Tether serves as a ‘stable coin’ for the broad cryptocurrency market. With its price hovering fractionally higher and sometimes traversing incrementally lower, there is not much volatility and day traders could frankly become bored to tears trying to pursue the important digital asset as a wager.

On the 1^st of April, USDT/USD moved up to the almost remarkable price of 1.0006000 and has since traded lower.  The price of Tether as of this writing is near the 1.00020000 level as USDT/USD continues to trade slightly above its 1.00000000 ratio which serves as its ‘cornerstone’ regarding its ‘promise’ to work as a stable coin in the volatile world of cryptocurrency, thus providing ‘assured’ value.

However, and very curiously, the Wall Street Journal published an article this weekend that states there is ‘known’ short selling activity being reported in USDT/USD by some large hedge funds. The article in the WSJ states that some investors feel the value of Tether is prone to a potential loss of value because of rather less than transparent financial infrastructure.

Tether has a history of having its value questioned before, in fact its parent company was taken to court in the U.S by regulators who questioned the financial accounting of the company and a fine was issued.   However, USDT/USD continues to tread the 1.00000000 ratio very comfortably and as pointed out above only a few days ago managed a rather polite high. Speculators who participate in USDT/USD need to have patience and the ability to absorb the potential costs via their transactions, which could outweigh the benefits of profits being made by trading Tether. Wagering on USDT/USD should be done by experienced traders who can manage their risk and leverage well. The question of stamina is also vital, because if a trader wants to pursue a position which tries to mirror a hedge fund, timeframes will be much longer than a mere near term trade.

Traders who want to wager on downside price action in USDT/USD today potentially being created because of the possible noise the Wall Street Journal article published yesterday cannot be blamed. However, speculators should note that negative shadows regarding news have had little effect on USDT/USD in the past, and this time may prove to be no different in the short term. If a speculator chooses to sell USDT/USD they should buy near perceived resistance levels and use strict price orders for take profit targets.

Current Resistance: 1.00041000

Current Support: 1.00020000

High Target: 1.0050000

Low Target: 0.99990000