Donald Trump’s Ethereum Buying Spree Does Little for ETH Prices

Legendary hacker George Hotz has facetiously stated that none of your crypto assets are actually "safe." 

The sensational claim comes after OpenAI, the leading artificial intelligence company, released its new o3 model that has supposedly found a polynomial time factoring algorithm.

The algorithm would make it possible to factorize large numbers, thus compromising the security of many cryptographic systems. However, it is extremely unlikely that crypto security would be broken without large-scale quantum computing. In fact, this would certainly qualify as the invention of the century.

Hotz attached an Axios article, which says that computer science majors are becoming increasingly concerned about the possibility of being replaced by AI due to the o3 model showcasing extremely impressive programming abilities that already exceed those of the vast majority of developers. 

Is this just a joke? 

Hotz, who is known for founding self-driving car startup Comma.ai, rose to prominence at a young age after unlocking Apple's iPhones and hacking PlayStation 3. 

That said, many cryptocurrency enthusiasts have downplayed Hotz's warning since it is likely to be a joke.

Blockstream CEO Adam Back has noted that the claim about the cryptography-compromising algorithm is "highly dubious." Many have noted that the Axios article does not actually mention anything about the algorithm.

Back has suggested that this could likely be simply "a misunderstood joke."

Some have suggested that the joke could be aimed at sensational headlines surrounding AI development.

Cardano price started a fresh decline below the $1.050 zone. ADA is consolidating and might struggle to start a fresh increase above the $1.0250 level.

• ADA price started a fresh decline from the $1.150 zone.
• The price is trading below $1.0550 and the 100-hourly simple moving average.
• There is a connecting bearish trend line forming with resistance at $1.040 on the hourly chart of the ADA/USD pair (data source from Kraken).
• The pair could start another increase if it clears the $1.050 resistance zone.

Cardano Price Faces Hurdles

After struggling to stay above the $1.150 level, Cardano started a fresh decline unlike Bitcoin and Ethereum. ADA declined below the $1.050 and $1.0350 support levels.

It even spiked below $1.00. A low was formed at $0.9615 and the price is now attempting to recover. There was a move above the $0.990 level. The price cleared the 23.6% Fib retracement level of the downward move from the $1.088 swing high to the $0.9615 low.

Cardano price is now trading below $1.050 and the 100-hourly simple moving average. On the upside, the price might face resistance near the $1.0250 zone. It is near the 50% Fib retracement level of the downward move from the $1.088 swing high to the $0.9615 low.

The first resistance is near $1.050. There is also a connecting bearish trend line forming with resistance at $1.040 on the hourly chart of the ADA/USD pair. The next key resistance might be $1.0880. If there is a close above the $1.0880 resistance, the price could start a strong rally.

In the stated case, the price could rise toward the $1.120 region. Any more gains might call for a move toward $1.1520 in the near term.

Another Decline in ADA?

If Cardano’s price fails to climb above the $1.050 resistance level, it could start another decline. Immediate support on the downside is near the $0.980 level.

The next major support is near the $0.9650 level. A downside break below the $0.9650 level could open the doors for a test of $0.9200. The next major support is near the $0.880 level where the bulls might emerge.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.

Major Support Levels – $0.980 and $0.9650.

Major Resistance Levels – $1.0250 and $1.0500.

World Liberty Financial, the DeFi project associated with President-elect Donald Trump, saw surges in governance token sales after Donald and Melania Trump launched their respective memecoins ahead of Trump’s inauguration on Monday.

The project announced late Sunday night on X that it has “completed” its mission and sold 20 billion tokens or 20% of the 100 billion token supply. The project has now opened up the sale of an additional 5 billion tokens or 5% of the supply. “Due to massive demand and overwhelming interest, we’ve decided to open up an additional block of 5% of token supply,” the project said.

World Liberty Financial’s governance token WLFI saw its cumulative sales reach $254 million late Sunday, up from around $91 million a day earlier, according to Dune Analytics data. Onchain data shows the WLFI token has over 34,000 holders among over 44,500 transactions.

Notably, Tron Founder Justin Sun said in an X post on Sunday that Tron DAO has invested an additional $45 million in WLFI, bringing the total investment to $75 million. Sun became an advisor to World Liberty Financial in November after his project poured a $30 million investment into WLFI.

The Sunday surge in WLFI token sales followed the launches of Donald Trump’s and Melania Trump's memecoins. Over the weekend, the President-elect launched an “Official Trump” memecoin, with Melania Trump soon following suit with her memecoin “MELANIA.”

The Official Trump token quickly surged to a high of around $72 and is trading at $44 at the time of writing. Its market cap currently stands at $8.8 billion, with a $44.1 billion fully diluted valuation (FDV). The MELANIA token’s FDV reached $7.6 billion as it continues to see wild fluctuations in price, according to DEXscreener.

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© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Donald Trump and his team have been accused of running a “pump and dump scheme” after back-to-back memecoin launches added billions of dollars to the net worths of the incoming US president and first lady.

Just a day after Trump’s self-branded Official Trump (TRUMP) token launched and soared to a $15 billion market cap, Trump’s wife Melania launched a self-titled memecoin of her own — which led commentators to accuse the family of unseemly behavior.

“You were right if you thought the smashing success of $TRUMP would make Trump greedy,” Bianco Research president Jim Bianco said on Jan. 19, following the launch of Mrs. Trump’s token.

The TRUMP token fell 38% in the hours after his wife’s token launched. MELANIA hit a peak value of over $13 billion four hours after its Jan. 19 launch, which has since nearly halved to $7.3 billion.

“We are witnessing the largest unforced error ever made before a Presidential inauguration…unbelievable,” Phinance Technologies founder Edward Dowd said on X in response to TRUMP’s price fall.

Financial analyst Michael A. Gayed said on X that Trump’s credibility has been “totally destroyed,” describing TRUMP as a “pump and dump” scheme.

”My read is that the insiders who helped launch $TRUMP didn’t realize how much it would pump and either didn’t buy enough or sold too early,” Delphi Labs co-founder José Maria Macedo wrote in a Jan. 19 X post.

“They rushed to run it back with $MELANIA and make sure they filled their bags this time,” he added. “In their greed they nuked $30 [billion] of value, transformed the optics into pure grift, and probably committed a bunch of crimes too.”

The MELANIA memecoin launch comes amid a wider crypto market fall, which saw Bitcoin’s price tumble almost 6% from $105,900 to below $99,650, TradingView data shows.

XRP price started a fresh increase above the $3.050 level. The price is holding gains and might continue to rise if it clears the $3.20 resistance.

• XRP price gained over 15% and rallied toward the $3.40 zone.
• The price is now trading below $3.250 and the 100-hourly Simple Moving Average.
• There is a connecting bearish trend line forming with resistance at $3.20 on the hourly chart of the XRP/USD pair (data source from Kraken).
• The pair might start a fresh increase if it stays above the $2.880 support.

XRP Price Dips To Support

XRP price managed to start a fresh increase above the $2.750 and $2.880 resistance levels. The price outperformed both Bitcoin and Ethereum. There was a move above the $3.050 and $3.20 levels.

The price tested the $3.40 zone and recently corrected some gains. A low was formed at $2.81 and the price is now recovering. There was a move above the $3.050 level. The price cleared the 50% Fib retracement level of the downward move from the $3.23 swing high to the $2.81 low.

The price is now trading below $3.20 and the 100-hourly Simple Moving Average. There is also a connecting bearish trend line forming with resistance at $3.20 on the hourly chart of the XRP/USD pair.

On the upside, the price might face resistance near the $3.130 level or the 76.4% Fib retracement level of the downward move from the $3.23 swing high to the $2.81 low. The first major resistance is near the $3.20 level. The next resistance is $3.230.

A clear move above the $3.230 resistance might send the price toward the $3.320 resistance. Any more gains might send the price toward the $3.40 resistance or even $3.420 in the near term. The next major hurdle for the bulls might be $3.50 and a new all-time high.

Another Downside Correction?

If XRP fails to clear the $3.20 resistance zone, it could start another decline. Initial support on the downside is near the $3.00 level. The next major support is near the $2.88 level.

If there is a downside break and a close below the $2.88 level, the price might continue to decline toward the $2.750 support. The next major support sits near the $2.650 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $3.00 and $2.880.

Major Resistance Levels – $3.130 and $3.20.

TradeCompass for January 20, 2025: Bitcoin Futures Analysis

Bitcoin futures (BTC) are currently trading at $101,925. Today’s key thresholds for determining market sentiment are:

• Bullish Above: $103,260 – Signaling upside momentum if the price moves above Friday’s Value Area High.
• Bearish Below: $101,215 – Indicating bearish sentiment if the price drops below today’s developing VWAP.

Bullish Key Levels for Bitcoin Futures Today

• $104,100

  • A key resistance level just below Friday’s VWAP.
  • A potential partial profit-taking zone.

• $105,240

  • Located just below Friday’s POC, acting as a secondary bullish target.

• $106,495

  • Positioned just under the Value Area High of January 17th.

Bearish Key Levels for Bitcoin Futures Today

• $100,945

  • A quick profit target, near the bearish threshold, aligning with the Value Area High of January 16th.

• $100,360

  • Positioned just above the January 15th Value Area High, offering another bearish milestone.

• $99,710

  • Just above the January 16th POC, marking a more significant downside level.

• $99,300

  • A critical target near the Value Area Low of January 16th and the January 15th VWAP.

• $96,600

  • For adventurous traders, this is a longer-term bearish target, situated just above the January 14th VWAP.

Key Notes for Today’s Bitcoin Futures Trading

1. Partial Profit-Taking

One of the core principles of the TradeCompass is to take partial profits at multiple key levels. This ensures gains are locked in incrementally, reducing the reliance on a single large move, which is less frequent.

2. Stop-Loss Adjustment

Once the first profit target is reached, consider moving your stop-loss to breakeven. This approach protects your capital while leaving room for further upside or downside exploration.

3. Context for Today's Range

Bitcoin futures today show a tight clustering of bearish targets, reflecting the shorter price distances between key levels. This highlights the importance of adapting strategies to daily volatility and average range expectations.

Summary for Bitcoin Futures Today, According to Our TradeCompass

• Bullish Above: $103,260 – Targeting $104,100, $105,240, and $106,495.
• Bearish Below: $101,215 – Targeting $100,945, $100,360, $99,710, $99,300, and $96,600.
• Utilize partial profit-taking and move stop-losses to breakeven after the first target is reached.

Conclusion

Bitcoin futures are currently trading between key bullish and bearish thresholds. Traders should monitor price movements around $103,260 and $101,215 to determine market direction. This Bitcoin futures analysis underscores the importance of managing trades dynamically, taking partial profits, and protecting positions.

Trade wisely with the TradeCompass and at your own risk. Visit ForexLive.com for additional views.