Reports suggest that Justin Sun lost $66 million on Friday as Ethereum price dipped to levels last seen in February. Crypto markets continue to endure a sell-off, overshadowing optimism for a possible launch of spot ETH ETFs.

Multiple signals indicate that the Ethereum price may not slide much lower after the 10% crash on Friday despite elevated
fear levels.

Justin Sun Loses $66 Million on Ethereum Price Crash

Spot On Chain reported that the Tron Founder and Huobi Global advisor could have seen all the $58 million in profit accrued in the last five months go down the drain as the Ethereum price descended to $2,810 on Friday.

“Such a volatile market! Just 24 hours ago, he had a $58M profit from these ETH transactions; but now, it is already a $66M loss after the dump,” the report read.

Based on the report, Justin Sun acquired 361,000 ETH tokens between February and June, worth approximately $1.1 billion. Most transactions happened on Binance, where he recently transferred several DeFi tokens.

The breakdown of transactions within the five months that Sun bought ETH through Binance includes:

• Bought 169,604 Ethereum (ETH) in February via “0x7a9” at an average price of $2,870
• Bought 176,117 Ethereum (ETH)  in April via “0x435” at an average price of $3,177
• Bought 15,416 Ethereum (ETH)   in June via “0xdbf” at an average price of $3,474

The three wallets often received ETH from Binance right after their stablecoin deposits.

Read more: How to Buy Ethereum (ETH) and Everything You Need to Know

The report comes only hours after his proposal to engage the German government to salvage its Bitcoin sell-off and minimize market impact. While the idea was noble, the offer stirred mixed reactions, with speculation of a possible market manipulation case.

“I believe that the German Government should reject Justin’s offer to buy the BTC via a private OTC transaction. That action, although noble sounding, would indeed be market manipulation, as well as, potentially lead itself to corruptive or unethical practices. This is where only people with the right contacts have access to these BTC and potentially at a less than market price. Also, nothing guarantees that the buyer won’t turn around and dump part of the holdings themselves,” Founder & CEO of Blockpliance Guillermo Fernandes told BeInCrypto.

Whether the German Government will take up Justin Sun on his offer remains unknown. Meanwhile, the market continues to endure bearish sentiment, with experts reporting extreme fear. According to Coinglass, over $104 million in ETH liquidations happened in the last 24 hours.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

The crypto community’s eyes remain peeled on the week of July 15. According to Bloomberg analysts James Seyffart and Eric Balchunas, this is the revised timeline for possible ETH ETF launches as prospective issuers submit their amended S-1 forms. Nevertheless, Seyffart acknowledged “fairly low confidence in those launch date predictions.”

During the intraday trading session on July 4, Cardano’s (ADA) Age Consumed metric rose to a 35-day high, suggesting that previously dormant tokens have begun to change hands. 

This surge has since been followed by a decline in the altcoin’s price, signaling that a local top has been reached. 

Cardano Long-Term Holders Are on the Move

On July 4, 1.32 billion ADA coins worth approximately $433 million at current market prices were moved, as indicated by the spike in its Age Consumed metric.

An asset’s Age Consumed metric tracks the movement of its dormant coins. The metric offers insight into the behavioral shifts of an asset’s long-term holders. This cohort of coin holders rarely moves their dormant coins around. Therefore, it is noteworthy when they do because it often precedes a shift in market trends. 

The Age Consumed Metric can be a marker of a price bottom. This occurs when a spike in the metric’s value is followed by an asset’s price rally. 

Read More: How To Buy Cardano (ADA) and Everything You Need To Know

Conversely, it is also an indicator of a price top. This occurs when the metric spikes and the asset’s price falls.  A price top refers to an asset’s highest price before a sustained decline.

At press time, ADA trades at $0.32. Its value has declined by 17% in the past 24 hours. For context, the altcoin traded at $0.39 when its Age Consumed surged. This price level represents its local top.

ADA’s daily trading volume has surged by 23% during the same period. This creates a bearish divergence between the coin’s price and trading volume, hinting at the possibility of a continued price decline.

In the past 24 hours, ADA’s daily trading volume has totaled $707 million. 

ADA Price Prediction: The Current Downtrend is Strong

ADA has been on a downtrend since the beginning of July. At its current price, the altcoin trades at a low last seen in November 2023.

ADA’s Aroon Down Line is 100%, confirming the strength of the current downtrend. This indicator measures an asset’s trend strength and identifies potential trend reversal points. When its Down Line is close to 100%, the downtrend is strong, and the most recent low was reached relatively recently.

If the bearish bias towards the altcoin continues to gain momentum, ADA’s value may dip to $0.31.

Read More: Cardano (ADA) Price Prediction 2024/2025/2030

However, if buying pressure spikes, it may push the coin’s price to $0.34.

The US Bureau of Labor Statistics reported Friday that employers added 206,000 jobs in June. The unemployment rate rose slightly to 4.1%, above the estimated 4.0%, while average hourly earnings remained at 0.3% monthly.

Although this suggests that the US job market continues to experience healthy growth, there has been a muted response in crypto markets.

New Jobs Created Beats Analysts Estimate

According to the Bureau of Labor Statistics, the US economy added 206,000 jobs in June. While this represented a 6% decline from the 218,000 jobs added in May, it exceeded analysts’ forecasts of around 190,000 new positions.

During that month, unemployment rose slightly to 4.1%, a 2% hike from the projected 4.0%. Steadying at 4%,  June’s unemployment rate suggested that the number of unemployed people as a percentage of the labor force remained stable. 

Further, average hourly earnings increased by 0.3% in June, matching forecasts. This reflects steady, albeit slow, wage growth for US workers.

Crypto Markets Fail to React

While the report suggests the US job market continues to experience positive momentum, the cryptocurrency market has failed to react. Still declining as of this writing, the global cryptocurrency market capitalization has dropped by 6% in the past 24 hours.

The value of the leading crypto asset, Bitcoin (BTC), has plummeted by 3% during that period. At press time, BTC trades at $55,249.

Its price movements, assessed on an hourly chart, confirm the decline in trading activity despite the positive outlook offered by the Nonfarm Payrolls report. 

As of this writing, the coin’s Relative Strength Index (RSI) is 40.76, resting below the 50-neutral zone. This indicator measures the asset’s overbought and oversold market conditions. At 42.49, BTC’s RSI shows that selling pressure currently dwarfs buying activity.

If this trend continues, the coin’s price may plummet further to exchange hands at $54,553.

Read more: Bitcoin Price Prediction 2024/2025/2030

However, if sentiment shifts from bearish to bullish, the coin’s price may rally to $55,427.