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Bitcoin Price developments at the end of 2024 are worrying investors. At the 50 EMA, an essential level to maintain bullish momentum, Bitcoin lost its main support. This breakout signals a substantial change in market sentiment and raises the prospect of additional declines as 2025 begins.
A bearish signal, loss of the 50 EMA could lead to more selling pressure, especially if traders expect the downtrend to continue. The 200 EMA, which sits around $76,160, and the psychological level, which sits at $85,457, are the next important support levels. Even more severe declines could come in the first quarter of 2025 if Bitcoin fails to stabilize at these levels.
Volume profiles from recent trading sessions indicate a decrease in market activity, making Bitcoin even more vulnerable. A rally to retest the 50 EMA seems unlikely in the near future absent strong buying pressure. Nonetheless, this could indicate a brief recovery and restore some confidence in the market if the bulls manage to push Bitcoin back above the 50 EMA in the coming days.
The bearish momentum may not yet be exhausted, as indicated by the Relative Strength Index (RSI), which is trending lower while remaining in the neutral zone. Given the current absence of robust institutional or retail demand, the outlook remains cautious. The climate for Bitcoin it’s going to be difficult in 2025.
The market needs a strong catalyst to avoid further losses, which could include a technical recovery above critical levels such as $96,472, macroeconomic changes, or renewed institutional interest.
Shiba Inu reaches crucial level
Shiba Inu touched the 200 EMA, considered an important support threshold, marking a turning point in its market performance. Although support levels are generally considered as chances for a rebound, it is alarming to see the 200 EMA mark being reached in this situation. Assets falling to this level in the past have often indicated a change in dynamics and the possibility of a more severe correction.
SHIB performed poorly in late 2024 and the bulls are struggling to regain control. The move to the 200 EMA suggests that SHIB is vulnerable due to a prolonged period of weak demand and selling pressures. A recovery from this level is feasible, but it will take significant buying pressure and new market interest to offset the pessimistic outlook.
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The decline in activity in volume profiles further highlights traders’ lack of confidence. It is possible that the asset is close to being sold out as the Relative Strength Index (RSI) has also fallen into oversold territory. However, a reversal is not always assured by oversold conditions, especially when the overall market environment is still uncertain.
The psychological zones around $0.000020 and $0.000018 will be the next levels to watch if SHIB is unable to hold the 200 EMA as support. A collapse below these levels could accelerate losses and send SHIB into a downtrend that could take over in early 2025. Right now, the 200 EMA is the center of attention.
Although there is some hope for stabilization, the overall technical picture indicates that SHIB is moving forward cautiously. Although the road ahead remains difficult, bulls must quickly return to higher levels to stop further deterioration.
XRP in trouble
Due to a combination of investor hesitation and a slowdown in the most recent bullish momentum, XRP is struggling with the crucial $2 support level as 2024 draws to a close. With its current price hovering around $2.03, XRP has not been able to overcome this psychological barrier, suggesting that market sentiment may change as the new year approaches.
The $2 mark has been a crucial point in XRP’s performance, especially after its dramatic rise earlier this year. But the asset’s current inability to maintain this level raises the question of whether momentum will resume in 2025. It appears that XRP is approaching a tipping point, as the RSI and falling volume indicate bearish pressure increased.
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XRP is closing in on its 50 EMA, the first significant support level since the start of its huge rally, according to the technical chart. Historically, the 50 EMA has been a crucial level for XRP, frequently dictating whether the asset recovers or becomes vulnerable to prolonged corrections. Bulls could become more optimistic if this level is successfully defended, but a breakout could lead to a larger retracement towards $1.80, or even $1.50.
Right now, the trajectory of XRP will be greatly influenced by the state of the broader market and investor sentiment. Although there are difficulties in the current price action, traders should pay close attention due to the proximity of the 50 EMA. If market conditions improve, a recovery from this level could pave the way for a new rally in early 2025.
As the year begins, it will be important to keep an eye on how XRP performs around $2 and how it interacts with the 50 EMA. The year 2025 is expected to be a crucial year for XRP, whether it regains strength or encounters further difficulties.