Bitcoin Crash in 2025? Shiba Inu and XRP Updates
Bitcoin’s 2024 End-of-Year Struggles and 2025 Outlook
As the year 2024 comes to an end, Bitcoin’s price action has been alarming for investors, especially after losing its 50 EMA support, which is a significant change in market sentiment. This critical level, which would have kept the bullish momentum intact, now makes Bitcoin susceptible to further declines into 2025.
Bitcoin’s Loss of Support and Bearish Implications
The setup below the 50 EMA is a bearish signal that can lead to a boost in selling pressures. Without any deep recovery, Bitcoin may drop to its next key support levels:
200 EMA: Around $76,160.
Psychological Level: Around $85,457.
In case Bitcoin fails to stabilize at these levels, it may see more significant losses during the first quarter of 2025. This is because declining trading volume supports the bearish momentum, and there is little sign of significant buying interest.
While a near-term bounce could be in order, especially should bulls succeed in propelling Bitcoin higher than the 50 EMA, the Relative Strength Index remains trending lower into the neutral area.
This argues for continued momentum to the downside unless there is any real institutional or retail demand step in to provide some counter-pressure to the direction.
Reversal Triggers
Reversing its course will require quite a catalyst and one of which may include the following:
- Technical Bounce: A break above critical levels of $96,472 may regain the bulls’ confidence.
- Global Macro Factors: Global macro-positive news can further push up the price of Bitcoin.
- Institutional Re-entry: Major investors might return to the market with a bang and help stabilize it.
In the absence of these factors, Bitcoin will find a difficult environment for itself as 2025 sets in.
Shiba Inu’s Critical Support Test
Shiba Inu (SHIB) has turned to its support threshold of 200 EMA which indeed comes out to be a turning point for the market performance. Such levels are generally considered as rebounds, but SHIB’s current position does indicate vulnerability to it.
Weak Demand and Selling Pressure
Weak demand and selling pressure are responsible for the underperformance of SHIB in late 2024. A decline to the 200 EMA underscores how precarious the state of the asset is.
A move above the same could be triggered only by robust buying activity and renewed interest in the market.
In case SHIB cannot hold onto the 200 EMA, these levels become very important:
$0.000020: A psychological level
$0.000018: Another significant support area.
A breakdown below these points would accelerate losses and could even push into a bearish trend in early 2025.
Technical Indicators and Market Sentiment
RSI: SHIB’s RSI has entered into the oversold territory. This indicates selling is almost close to exhaustion, but it still does not ensure a reversal as such conditions may not hold when the market environment is uncertain.
Volume Loss: Dwindling trading activity is another signal that traders’ confidence is fading. Stabilization is still viable, but the technical perspective for SHIB suggests caution. Bulls need to push hard to regain the higher levels and contain the decline.
XRP Fighting to Support Levels at $2
XRP has its challenges as the end of 2024 draws to a close and fails to keep above the $2 psychological support level. Despite reaching $2.03, XRP cannot recover convincingly, indicating it is losing the steam from the earlier bull run.
Why $2 Matters to XRP
The $2 level has been a critical benchmark for XRP throughout 2024, especially following its significant rally earlier in the year. Its inability to hold above this level raises concerns about its prospects heading into 2025.
Key technical levels to monitor include:
50 EMA: XRP is approaching this level, which has historically served as a pivotal point for recovery or further correction.
Possible Downside Targets: In case the 50 EMA fails, XRP could easily retreat towards $1.80 or even $1.50.
Market Sentiment and Technical Indicators
RSI and Volume: A downtick in RSI along with the volume will add more pressure on the bears as they continue to pile on uncertainty surrounding XRP’s further course.
Overall Market Sentiment: The entire trend will depend on the market and the investor’s sentiments.
Possible Recovery Scenarios
If XRP holds the $2 support and the 50 EMA, then it can pave the way for a rally in early 2025. Failure to do so could mean further losses and make the coming weeks critical for XRP’s future performance.
As 2024 comes to a close, Bitcoin, Shiba Inu, and XRP are all facing significant challenges:
Bitcoin: The failure of its 50 EMA support indicates the possibility of a downtrend. Key levels for a downtrend are $76,160 and $85,457. There is a strong need for a catalyst to prevent further losses.
Shiba Inu: Testing the 200 EMA, SHIB risks a downtrend if the buying interest is not renewed. Its fate is at the psychological levels of $0.000020 and $0.000018.
XRP: Struggling to hold $2, XRP must defend its 50 EMA to avoid a retracement toward $1.80 or lower.
Each asset’s performance in early 2025 will hinge on technical recoveries, market sentiment, and macroeconomic factors. The crypto market’s outlook remains uncertain, with volatility likely to persist into the new year.
