The reputation of Tether is at stake as it might not be the stable coin after all! Tether is rumored to be NOT backed up with the US dollar reserves and in fact, the funds were invested in Bitcoin. The case against the firm and Bitfinex Exchange has certainly reached the ears of the traders and the decisions might reflect on the charts soon.
The case is racing against the firm as it has been confirmed in the court that Tether was investing in Bitcoin with its reserves. Indirectly, it does question the stability of USDT. The firm might be charged with penalties, but it might not crash USDT market.
In fact, recently the rumor stated that there was a transaction of $850 in order to shadow the withdrawal payments which were made against Bitfinex. This statement surely speaks of the scrutinized relationships with Tether and Bitfinex. Time will serve the best judgment soon!
Price analysis of Tether on May 29th, 2019:
At 9:07 UTC time, the price is traded at $1 on 29th May. A quick upward hit will surely improve the Return on Investment which is currently at -0.26%. The market ranking is stable at number 8 with market cap value at $3,110,671,804 USD and 24 hour volume at $23,415,697,186 USD respectively.
Noticing the trend since the beginning of the year, the long term investment might seem like a good option for the traders. The trend is followed above the baseline most of the year, which is a good sign. The highest peak was seen at $1.014 on 6th Jan (dropped by 1.3% today) but certainly not paining the capital of the traders.
However, considering short-term investment might require some research before you jump in the pool. Traders might have burned their fingers in the last week of April 2019 as the bottom rock was realized at $0.9647 on 26th April. However, the market is increased by 3% today, which do not really affect long-term investors. But short-term traders could not leave the screen for quite some time.
Predictions and Conclusion:
Tether is showing neither bearish nor bullish trend as of now. But the price is expected to touch down $1.034 soon. It will be profitable for the traders to fasten their belts for long term journey with Tether. Traders might want to restrict the resistant level at $1.005 and support level at $0.997 respectively.
But with the hearings in the court, the bullish cycle might start very soon. We are hoping that Tether must come clean along with Bitfinex for the market to forecast some good fruits.