Bitcoin (BTC) Loses Support: 2025 to Begin With Crash? Shiba Inu (SHIB) Hits Critical Level, XRP Struggles to Hold Above $2

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As a seasoned crypto investor with a decade-long journey through the digital asset wilderness, I’ve seen my fair share of market ebbs and flows. The current situation, however, feels reminiscent of the infamous “crypto winter” of 2018, when the bears seemed to rule the roost for an extended period.

The loss of the 50 EMA as a support level for Bitcoin is a significant red flag that cannot be ignored. The bearish signal raises concerns about further declines in the coming year, particularly if we fail to stabilize at the next important levels. I’ve learned the hard way that when the 50 EMA goes, it’s best to batten down the hatches and brace for impact.

Shiba Inu‘s touch of the 200 EMA is equally concerning, as this level has historically signaled a change in momentum and the potential for a more severe correction. I remember when I first entered the crypto world, I thought SHIB was a fun meme coin with no real value – boy, was I wrong! But now, I’m not so sure it will bounce back as easily as before.

XRP‘s struggle to maintain the $2 support level is a reminder that even once-promising assets can falter when market sentiment shifts. The current price action brings back memories of 2017, when XRP seemed unstoppable and I wished I had invested more – only to see it plummet shortly after.

In the end, it’s always important to remember that crypto is a rollercoaster ride with plenty of ups and downs. As they say in the business, “Don’t catch a falling knife!” But hey, at least we can always find solace in the fact that if things get really tough, we’ll still have Dogecoin Elon to keep us entertained!

As 2024 nears its end, investors are concerned about Bitcoin’s price trends. The critical 50 Exponential Moving Average (EMA), which usually fuels bullish momentum, no longer seems to be providing support for Bitcoin. This break indicates a significant shift in market sentiment and suggests potential further drops as we move into 2025.

As a long-term investor with over a decade of experience in the cryptocurrency market, I’ve learned that reading the signals correctly is crucial to making informed decisions. The recent bearish signal, with the 50 Exponential Moving Average (EMA) showing signs of decline, could potentially lead to increased selling pressure. This is particularly concerning if traders anticipate a continuation of the downtrend. However, I always remind myself that market trends can be unpredictable, and it’s essential not to make hasty decisions based on short-term fluctuations.

The next important support levels to watch are the 200 EMA, currently hovering around $76,160, and the psychological level at $85,457. If Bitcoin fails to stabilize at these levels, more severe drops may occur in the first quarter of 2025. I’ve seen such market corrections before, and they can be challenging times for any investor. But I always remember that these periods often present opportunities for strategic buying when the market is undervalued.

In my experience, it’s essential to stay patient, informed, and disciplined in the face of market volatility. Keeping a long-term perspective and being prepared for both bullish and bearish scenarios can help navigate the ups and downs of the crypto market.

As someone who has closely followed the crypto market for several years now, I must say that the recent trading volume profiles suggest a decrease in market activity, which makes Bitcoin appear even more susceptible to further downturns. Based on my past experiences, I’ve learned that when the market is quiet like this, it can be challenging for Bitcoin to regain its footing and retest the 50 Exponential Moving Average (EMA). However, if the bulls manage to push Bitcoin above the 50 EMA in the coming days, it could potentially indicate a brief recovery and help restore some market confidence. But without strong buying pressure, I’m skeptical that we’ll see a significant recovery in the near future.

2025 could pose challenges for Bitcoin as its bearish trend might not have fully run its course, suggested by the Relative Strength Index (RSI), which is gradually decreasing but still within a neutral range. With minimal strong institutional or retail interest at present, the overall sentiment remains cautious.

As a seasoned investor who has witnessed numerous market fluctuations over the years, I firmly believe that a strong catalyst is essential to stem further losses and prevent potential financial ruin. My personal experience has taught me that ignoring market signals can lead to significant setbacks, and in this case, the market seems to be sending a clear message: we need a catalyst to push prices above the critical level of $96,472. This could come from various sources – technical recovery, macroeconomic changes, or renewed institutional interest. I’ve learned that ignoring these signs can lead to missed opportunities and losses, so I strongly advise staying vigilant and prepared for any potential catalysts that may arise.

Shiba Inu touches crucial level

In simpler terms, reaching the 200 Exponential Moving Average (EMA) by Shiba Inu signals an important point for its market behavior, often serving as a foundation for potential recovery. However, when a coin like Shiba Inu reaches this level, it’s a cause for concern because such instances have historically suggested a shift in the trend and could potentially lead to a more substantial downturn.

2024 saw a disappointing performance from SHIB towards the end of the year, with buyers finding it challenging to regain control. The continued move towards the 200 Exponential Moving Average indicates that SHIB is facing vulnerability due to an extended phase of low demand and selling pressure. A recovery from this point is possible, but it would require substantial buying activity and renewed market interest to counterbalance the prevailing pessimism.

A decrease in trading activity as shown on volume profiles underscores traders’ growing uncertainty about the asset. It could be that the asset is approaching its limit due to the Relative Strength Index (RSI) dipping into an oversold region. Yet, it’s not guaranteed that a reversal will occur under oversold conditions, especially when the broader market scenario remains uncertain.

If Shiba Inu (SHIB) fails to hold the 200 Exponential Moving Average (EMA) as support, two key price levels at approximately $0.000018 and $0.000020 could be the next focus points. A drop below these levels might accelerate losses and potentially trigger a prolonged bearish phase that may take effect in early 2025. At present, the 200 EMA is the most significant area to monitor closely.

Despite some potential for stability, the broader technical outlook suggests that Shiba Inu (SHIB) is proceeding with caution. While the path forward remains challenging, bulls need to quickly reclaim higher positions to halt any additional decline.

XRP struggling

As the end of 2024 approaches, XRP is finding it difficult to maintain the $2 support due to investor uncertainty and a slowdown in momentum following its latest bull run. At present, XRP’s price is roughly $2.03, and it has failed to break above this significant psychological threshold, implying that market sentiment could be shifting as the new year approaches, potentially indicating a change in investor sentiment.

The $2 mark has been crucial for XRP’s price movement, notably following its impressive rise this year. However, its struggle to hold onto this level raises doubts about whether it will regain momentum in 2025. As the Relative Strength Index (RSI) and decreasing volume suggest, XRP seems to be approaching a significant juncture under increased bearish influence.

As XRP moves closer to its 50 Exponential Moving Average (EMA), a key support point following its substantial upward trend, the technical outlook suggests this as a potential barrier. In the past, the 50 EMA has played a significant role in determining XRP’s trajectory, often influencing whether the asset rebounds or is susceptible to extended corrections. If this level is held successfully, bulls may grow more hopeful, but a breach could trigger a larger pullback toward the ranges of $1.80 or even $1.50.

Currently, the direction of XRP is largely influenced by overall market conditions and investor attitudes. Despite the present volatility in its price trend, it’s crucial for traders to stay vigilant due to the close proximity of the 50 Exponential Moving Average (EMA). If market circumstances become more favorable, a rebound from this level could potentially set the stage for an early 2025 rally.

As I embark on this new year, my focus will be on closely monitoring XRP’s behavior around the $2 mark and its relationship with the 50 Exponential Moving Average (EMA). The year 2025 looms as a pivotal moment for XRP, whether it manages to regain traction or faces fresh challenges. I am ready to adapt my strategies accordingly.

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2025-01-01 03:06