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The year has begun well for Stellar Lumens as evidenced by the remarkable 30% price recovery. This spike occurs as XLM crosses the 50 EMA, a key sign of possible trend reversals and fresh market bullishness. Thanks to a favorable market environment and increased trading activity, XLM has gained traction and is currently trading around $0.45. Being a significant technical milestone, the break above the 50 EMA is especially remarkable.

Historically, a bearish phase has ended and a more persistent upward trend has begun when this moving average is crossed. Around $0.50, a psychological and technical resistance level, is the next possible price target for XLM.

With the momentum and general market optimism, a rally toward $0.60 may be in the cards if the asset is able to overcome this obstacle. With altcoins like XLM gaining ground and Bitcoin holding steady, the market as a whole has shown indications of stabilization.

A retracement could also occur if it is unable to hold above the 50 EMA, testing support levels at $0.39 and $0.30.

Bitcoin gets ready

Bitcoin is in a pivotal stage as 2025 gets underway, with its price circling $96,700. Signs of a possible slowdown are emerging even though the asset has been able to hold onto a large portion of the momentum it acquired during the late 2024 rally. One of the main problems is that Bitcoin has a hard time staying above the 50 EMA, a crucial technical level that frequently indicates market trends.

The inability of Bitcoin to maintain a strong hold above this line despite a few recovery attempts raises questions regarding the strength of the bullish momentum. Failure to recover and hold this level has historically resulted in prolonged consolidation or even a decline. Additionally, the trading volume has been rather low, suggesting that the recent price movements might not have the strong support required for a long-term rally.

Stronger buying pressure is required for Bitcoin to break through the psychological $100,000 barrier, which is a major resistance area, and validate that its bullish trajectory is still in place. But there are some bright spots for Bitcoin in 2025. Growing institutional interest and the growing acceptance of cryptocurrencies as commonplace financial assets are driving the cautious optimism that permeates the market as a whole.

A more ambitious upward trend may be possible if Bitcoin can get past the present resistance and gain traction above the $100,000 threshold. Conversely, Bitcoin may retest lower levels if it is unable to regain important support levels like $95,000 and $92,000, with the 200 EMA close to $76,000 serving as a crucial safety net.

Shiba Inu breaks through

A significant move was made by Shiba Inu when it broke through the 100 EMA, a crucial technical resistance level that had been a barrier for weeks. Although this breakout shows that bulls are trying to regain control, the larger picture points to little chance of short-term upside. Since SHIB is currently trading at about $0.00002326, the 100 EMA's breakthrough indicates a change in market sentiment.

This trend may draw traders looking to profit from the momentum in the short term. But the trading volume is still low, indicating that market players are not very convinced. From a technical point of view, SHIB has a difficult journey ahead. The 50 EMA is the next major resistance and has historically served as a barrier during recoveries. Significant buying pressure would be needed to push SHIB above this level in order for it to continue on its upward trajectory.

A retracement toward the 200 EMA, which has consistently offered support, at about $0.000021 could occur if this is not done. Given the state of the market as a whole, SHIB's growth prospects seem limited. The recent price movement of the asset indicates a consolidation pattern as opposed to strong rallies.

Further raising doubts about Shiba Inu's future performance is the company's dependence on speculative trading as opposed to fundamental catalysts. Unless a major catalyst appears, SHIB might continue to trade in a narrow range in the upcoming weeks. SHIB's trajectory may be impacted by volume spikes and changes in the larger cryptocurrency market, so investors should keep an eye out for these.