Tag: Negative

Former U.S. President Donald Trump claimed on Wednesday that he had “saved” the American crypto industry, alleging that former SEC Chair Gary Gensler and an “anti-crypto army” had nearly destroyed it by driving Bitcoin, crypto perpetuals, and innovation offshore. Trump made the statement on Truth Social.

“America is now the crypto capital of the world, and builders and entrepreneurs are coming back to the United States where they belong,” he added. “Under my leadership, we will codify a future-proof digital asset market structure that cannot be undone by the crypto haters. The new frontier of finance is being built in America, and Trump will never let crypto down!”

In a separate post, he stated, “where we are currently the crypto capital of the world, other countries are trying diligently to replace us in that capacity, but we won’t let that happen. It is a major industry, and we must protect it.”

Market Reaction

Despite such pronouncements from a world leader typically causing market gains, the crypto market experienced a sharp downturn. The market fell nearly 3%, wiping out over $80 billion.

Over the past 24 hours, approximately 165,000 traders were liquidated, with total liquidations reaching $928 million, 93% of which were long positions, according to Coinglass.

Bitcoin dropped 3.2%, falling to $72,800, its lowest level since mid-April. The asset has now lost 8% over the past two weeks and is approaching the $60,000 zone.

Bitcoin and Ethereum Performance

Bitcoin experienced a significant drop, falling below $73,000 in a 60-minute period. Over $480 million in long positions were liquidated.

Ethereum also fell below the $2,000 psychological level, declining more than 4.4% to $1,975, its lowest level since the end of March. Altcoins broadly declined as the bear market intensified.

“Retail has erupted with ‘buy the dip’ calls toward ETH as a result of this drop below a key psychological support level,” reported Santiment. “This typically means the price may have a bit further to fall, due to the crowd (which usually gets calls wrong) being too optimistic.”

Geopolitical Factors

Market pressures were further exacerbated by a new wave of U.S. military strikes on Iran late Wednesday.

The strikes targeted an Iranian military site, and the U.S. shot down four Iranian drones near the Strait of Hormuz, according to Reuters.

“These actions were measured, purely defensive, and intended to maintain the ceasefire,” an official told the outlet. Iran retaliated by attacking a U.S. base in Kuwait.

XRP Price Dips Below $1.30

The price of XRP has continued its downward trend, trading below $1.30. The cryptocurrency is currently consolidating losses and facing resistance levels near $1.30 and $1.340.

XRP began another decline, falling below the $1.30 mark. It is now trading below this level and the 100-hourly Simple Moving Average. A bearish trend line is forming, with resistance at $1.340 on the hourly chart of the XRP/USD pair, according to data from Kraken. The pair could continue to decline if it remains below $1.340.

XRP failed to maintain its position above $1.340 and extended its decline, mirroring the trends of Bitcoin and Ethereum. The price dropped below $1.3250 and $1.3120, entering a short-term bearish zone. Losses extended below $1.30, with a low of $1.2677 recorded. The price is currently consolidating losses well below the 23.6% Fibonacci retracement level of the downward movement from the $1.3638 swing high to the $1.2677 low. XRP is trading below $1.30 and the 100-hourly Simple Moving Average.

Potential Resistance Levels

If a recovery occurs, the price may encounter resistance near $1.290. The first major resistance level is near $1.30. The primary resistance could be at $1.3150, which aligns with the 50% Fibonacci retracement level of the downward move from the $1.3638 swing high to the $1.2677 low. A close above $1.3150 could potentially push the price towards $1.3275. The next hurdle is at $1.340, where a bearish trend line also presents resistance on the hourly chart of the XRP/USD pair. A decisive move above the $1.340 resistance could drive the price towards the $1.3550 resistance level. Further gains might lead to a test of the $1.3750 resistance.

Potential for Further Losses

If XRP fails to surpass the $1.3150 resistance zone, a fresh decline could be initiated. Initial support on the downside is near $1.2675. The next significant support level is near $1.2550. A break below $1.2550 could see the price continue to decline towards $1.2320. The subsequent major support is near the $1.220 zone, below which the price could fall further to $1.20.

Technical Indicators

• Hourly MACD: The Moving Average Convergence Divergence (MACD) for XRP/USD is gaining momentum in the bearish zone.
• Hourly RSI: The Relative Strength Index (RSI) for XRP/USD is currently below the 50 level.

Key Levels

• Major Support Levels: $1.2675 and $1.2550
• Major Resistance Levels: $1.3150 and $1.3400

Bankless co-founder David Hoffman has sold his Ether holdings, citing his belief that the “ETH is money” thesis has largely played out. Despite this move, Hoffman maintains a strong bullish outlook on Ethereum as a network.

Rationale for the Sale

Hoffman, who has built his career and community around Ethereum, stated that the decision was not made lightly. In a recent tweet, he explained that the “ETH is money” thesis hinged on Ethereum’s success across various coordination layers, including decentralized leadership, governance, Layer 2 ecosystems, roadmap execution, and technological development.

Hoffman contrasted Ethereum with Bitcoin, noting that Bitcoin prioritized simplifying its blockchain to maximize the value of BTC, while Ethereum pursued a more ambitious path by expanding utility across decentralized applications, finance, tokenization, and infrastructure. He acknowledged that Ethereum has achieved part of its vision and earned its current market capitalization, but suggested that the opportunity for ETH to be significantly revalued higher by the market is diminishing.

Broader Crypto Market Dynamics

The Bankless co-founder also pointed to the broader crypto market, noting that the “strong version” of crypto, which focused on decentralized finance, NFTs, DAOs, and crypto-native systems, failed to maintain long-term mainstream support outside the 2020-2022 period. He attributed this to crypto’s association with scams, grifts, and speculative behavior, which weakened the social belief system necessary for ETH to function as global money.

Hoffman further stated that Ether’s utility increasingly benefits other forms of money, particularly stablecoins and tokenized dollars, rather than ETH itself. He described Ethereum as a “giver, not a taker,” emphasizing that the network provides secure blockspace, tokenization infrastructure, and DeFi support at minimal cost, rather than maximizing value for ETH holders. He believes Ethereum’s architecture prioritizes applications, rollups, and ecosystem growth over ETH itself, making it challenging for the underlying crypto asset to fully achieve global money status without overwhelming market dominance.

Market Sentiment and Uncertainty

Hoffman’s decision comes amid intensifying bearish sentiment surrounding Ethereum. A recent report by Santiment found that social media discussions have shifted from optimism to frustration and concerns about further downside.

The analytics firm noted that traders increasingly view ETH as “dead money” compared to better-performing crypto assets in 2024, with weakening ETF flows, declining on-chain activity, and growing competition from ecosystems like Solana and BNB Chain adding pressure on sentiment.

Rumors of prominent Ethereum figures reducing or exiting ETH positions, including discussions surrounding Hoffman, have also contributed to rising market uncertainty, particularly as traders worry about insiders losing confidence in the asset.

Tuesday saw a significant downturn in the cryptocurrency market, with a broad sell-off impacting various altcoins. Zcash (ZEC) led the decline, dropping 11%, followed by World Liberty Financial’s WLFI, which fell 8%, and Ondo Finance (ONDO), down 7%.

Bearish Sentiment Rises

The losses occurred amid growing bearish sentiment among investors. Blockchain analytics firm Santiment noted that such sentiment has historically preceded price rebounds. Santiment highlighted the declines of Ondo, Zcash, WLFI, and DeXe, among others, in a post on X.

Ondo Finance Faces Setback

Ondo Finance’s drop came shortly after the death of its 32-year-old founder and CEO, Nathan Allman. The company announced that Ian De Bode, the longtime president, will take over as CEO. The token is currently trading near $0.41, representing a gain of approximately 9% over the past seven days.

Zcash and WLFI Performance

Zcash’s 11% single-day drop was the steepest among the mentioned assets. However, the decline was approximately 7.5% over the last 24 hours, with ZEC trading around $570. The asset is up 60% over the past month and nearly 970% over the past year. WLFI’s 8% dip added to the token’s recent struggles, having reached a new all-time low in late April after a 16% single-day crash. The token has also faced a controversial lock-up proposal, a lawsuit from Tron’s Justin Sun, and ongoing scrutiny over its ties to the Trump family.

Other Tokens Show Gains

Despite the losses, some tokens showed positive performance over the week. NEAR was up more than 55% over seven days, trading around $2.50, although it declined nearly 8% on Tuesday. Hyperliquid’s HYPE token also saw gains, increasing 25% according to Santiment’s data. RAIN was the week’s standout performer, reaching an all-time high of around $0.012 on Tuesday, with a weekly increase of almost 55% and a 24-hour increase of over 44%.

Market Outlook

Santiment’s data indicated that bearish expectations have been building for about 10 days. The firm noted that this collective caution has historically preceded price recoveries, as markets often move against the prevailing sentiment. However, traders will be watching to see if this pattern holds, especially with Bitcoin remaining below $77,000 and struggling to break above its 200-day moving average near $80,000.

XRP Slides Toward Critical $1.20 Support as Bears Stay in Control

XRP is trading at $1.33 as May concludes, steadily declining to its lowest levels since March without any specific trigger. This downward trend has characterized the altcoin’s performance throughout the latter half of the month.

Key Support Levels Tested

The $1.20 support level is the closest it has been in weeks, and the 100-day moving average has been breached again. The XRP/BTC pair is also testing its recent low, appearing increasingly vulnerable.

Against USDT, the cryptocurrency is just below the upper boundary of a descending channel. The 100-day moving average, around $1.40, now acts as overhead resistance after being surpassed during May. The 200-day moving average continues to decline, currently around $1.60.

The Relative Strength Index (RSI) is hovering around 40, indicating weak momentum with no signs of a bottom forming.

Potential Breakdown Looms

The $1.20 demand zone is now within reach, making the next few daily closes crucial. A potential breakdown below $1.20 would be the first breach of that level since February, potentially leading to a further decline towards the $0.60 zone. Conversely, any recovery attempt would need to reclaim $1.40 and the 100-day moving average to suggest a genuine recovery is underway.

XRP/BTC Pair Analysis

The XRP/BTC pair is trading at 1,760 sats and is testing the pink horizontal support level, which marks the recent low near 1,730 sats.

The price has struggled to sustain a modest recovery above 1,800 sats. The RSI has been oscillating between 30 and 60 throughout May, without any sustained directional movement, reflecting a pair in a state of equilibrium rather than clear directional momentum.

The 100-day moving average, around 1,900 sats, and the 200-day moving average, near 2,050 sats, remain the dynamic recovery targets on either side of the critical 2,000 supply zone.

Below, the lower channel boundary and the demand area near 1,500 sats are the next potential targets if the recent low breaks down. XRP is expected to continue underperforming against BTC, as market sentiment remains largely pessimistic regarding Ripple.

XRP Price Faces Downward Correction

The price of XRP has begun a downward correction, falling below the $1.350 mark. Currently exhibiting bearish signals, the cryptocurrency may decline further, potentially dropping below $1.3120.

Technical Analysis

XRP’s price initiated a downward correction after failing to sustain its position above $1.350. It is now trading below $1.340 and the 100-hourly Simple Moving Average. A bearish trend line is forming, with resistance at $1.3580 on the hourly chart for the XRP/USD pair, according to data from Kraken. The pair could continue its downward trajectory if it remains below $1.3550.

Price Dips Below Support

XRP struggled to maintain its position above $1.3650, triggering a fresh decline mirroring movements in Bitcoin and Ethereum. The price dipped below the $1.3550 and $1.3500 levels, subsequently falling below $1.340. This move included a clear break below the 61.8% Fibonacci retracement level, calculated from the upward movement between the $1.30 swing low and the $1.3740 high. A bearish trend line is also forming, with resistance at $1.3580 on the hourly chart for the XRP/USD pair. The price is currently trading below $1.340 and the 100-hourly Simple Moving Average.

If the price attempts an upward move, it may encounter resistance near $1.3340. Initial major resistance is near $1.340, above which the price could rise to test $1.350. A decisive move above the $1.350 resistance could push the price towards the $1.3580 resistance and the trend line. Further gains might lead to a test of the $1.3650 resistance, with the next significant challenge for bulls potentially near $1.3740.

Potential for Further Decline

If XRP fails to surpass the $1.340 resistance zone, a fresh decline could be initiated. Initial support on the downside is near $1.3175. The next major support levels are near $1.3125 and the 83.2% Fibonacci retracement level, calculated from the upward movement between the $1.30 swing low and the $1.3740 high. A break and close below $1.3125 could lead to a continued decline towards $1.3020. Further support is expected near the $1.30 zone, with a potential for further losses towards $1.2920. Additional losses might lead to a test of $1.2880.

Technical Indicators

The Hourly MACD for XRP/USD is currently gaining momentum in the bearish zone. The Hourly RSI (Relative Strength Index) for XRP/USD is now below the 50 level.

Major Support Levels: $1.3175 and $1.3125.

Major Resistance Levels: $1.3400 and $1.3580.

Ethereum has fallen below the $2,100 level as selling pressure intensifies, overshadowing a recovery that has struggled to find solid support since mid-May. While the decline is concerning, an analysis by CryptoOnchain has identified a contradiction within the network data, suggesting the current price weakness is more complex than a simple bearish outlook implies.

The Contradiction in Data

The contradiction lies between two data points that should not be moving in opposite directions simultaneously. The ETH 2.0 staking rate has reached a new all-time high of 32.18%, representing the largest portion of Ethereum’s total supply ever committed to the network’s validator infrastructure. This indicates that more ETH is locked in long-term staking contracts than ever before, reflecting strong conviction in Ethereum’s long-term value among a significant group of holders.

However, the network’s organic activity tells a different story. Median token transfer size and transaction fees have plummeted by 80% to 90% compared to the 90-day average. The daily utility that drives genuine demand for block space, including transactions, DeFi activity, NFT volume, and protocol interactions, has nearly vanished. CryptoOnchain describes the current state of the Ethereum blockchain as an “on-chain ghost town.”

This presents a paradox: record conviction on one hand, and near-zero organic activity on the other, both occurring simultaneously within the same network at the same price. The analysis examines what is holding the structure together, and the answer is the most alarming element revealed by the data.

Record Staking and Empty Network

The CryptoOnchain analysis poses a critical question: if organic network activity has collapsed and US institutional spot demand has disappeared, why isn’t Ethereum’s price reflecting these twin absences more severely?

The Coinbase Premium has dropped to -0.12, confirming that American institutional spot buyers, who fueled the most significant phases of Ethereum’s previous recoveries, have reduced their active accumulation. On-chain activity metrics confirm that retail and protocol users are also largely absent. The two categories of participants whose genuine demand has historically supported Ethereum price levels are both missing simultaneously.

The Phantom Network: Binance Leverage vs. On-Chain Ghost Town

The analysis suggests that offshore derivatives are the key factor. Binance Funding Rates have surged 688% above the 90-day baseline, remaining positive at +0.01. Speculative leveraged positioning on the world’s largest derivatives exchange is currently sustaining Ethereum’s price in the absence of spot demand and network utility, which would typically provide that foundation.

The structural assessment is direct. Peak staking creates a genuine supply floor, as 32.18% of total ETH locked in validators represents a meaningful reduction in immediately available sell-side supply, thus limiting downside in a structural sense. However, a price sustained by derivatives leverage rather than spot demand or network utility is vulnerable. Leverage flushes do not occur gradually. When funding rates at 688% above baseline encounter a catalyst that forces deleveraging, the adjustment happens rapidly, and the supply floor provided by staking cannot absorb the speed of that kind of unwind.

Technical Outlook

Ethereum continues to trade near the critical $2,100 level after weeks of sustained selling pressure. The daily chart shows ETH trapped below the major resistance region between $2,280 and $2,380, an area that repeatedly rejected bullish momentum throughout May. Technically, Ethereum remains below the 200-day moving average, which continues trending downward, reinforcing the broader bearish market structure.

Despite the weakness, bulls are still defending the $2,050–$2,100 support region aggressively. A decisive breakdown below this area would likely expose Ethereum to a deeper move toward the broader demand region around $1,800–$1,900. Volume has gradually declined during the recent consolidation, reflecting market indecision. For bulls to regain momentum, Ethereum likely needs to reclaim the $2,200 level and then break decisively above the $2,300–$2,400 resistance cluster.