OTHERS.D Faces Bearish Pattern: Is a Drop Below 9% Dominance Coming?

• OTHERS.D dominance is testing a major support level, risking a drop below 9%.  
• The bearish head-and-shoulders pattern shows fading strength in smaller tokens.  
• A breakdown could lead to dominance falling near 8%, impacting mid-cap altcoins heavily. 

The latest technical chart on the crypto total market cap dominance, excluding the top 10 cryptocurrencies (OTHERS.D), paints a foreboding picture for the mid-and small-cap sector. Shared by prominent analyst Tony The Bull (@tonythebull_crypto), the monthly timeframe highlights a classic head-and-shoulders pattern, a bearish structure that often signals a trend reversal. At 9.23% dominance, the metric is currently on shaky ground, resting precariously on the dashed trendline—a crucial support that has held since mid-2020. 

This pullback comes after a failed breakout attempt, with the right shoulder’s peak falling below the head’s dominance level of approximately 11.28%. The bearish implications of this pattern suggest a downward trajectory, potentially undermining smaller-cap projects as capital remains concentrated in larger-cap tokens. With dominance now testing the neckline, a breakdown here could accelerate a slide toward 8% or lower, a level not seen since mid-2019. 

Anatomy of a Bearish Pattern: A Closer Look at the Technicals

The chart is a textbook example of a head-and-shoulders formation. The left shoulder formed in 2020, reaching a dominance of roughly 10.5% before correcting sharply. A bullish rally in 2021 drove the metric to its head, peaking near 11.28% dominance, but this momentum proved unsustainable. The subsequent decline set the stage for the right shoulder, which emerged between 2023 and 2024, reaching just under 10% dominance—a clear indication of waning strength.

The dashed trendline, representing long-term ascending support, has been a lifeline for OTHERS.D throughout its history. However, the current “pullback” phase, as highlighted in the chart, suggests this support may not hold much longer. A breakdown here could confirm the bearish thesis, with implications for mid- and small-cap tokens as capital outflows may accelerate.

Context and Implications for Investors

The broader market context underscores the bearish sentiment in OTHERS.D. As major tokens like Bitcoin and Ethereum regain dominance, smaller-cap projects face increasing liquidity challenges. 

Tony The Bull’s caption—”OTHERS.D looks ugly”—succinctly captures the sentiment. With dominance slipping below the critical 10% psychological barrier, smaller altcoins could see further valuation and trading volume declines. 

Investors should also take note of the declining momentum in the right shoulder, which signals a lack of buying interest. Historically, a confirmed head-and-shoulders breakdown often results in a measured move equal to the distance between the head and neckline. In this case, the projected target could see dominance fall to the 7–8% range, marking a significant loss for the sector.