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Stellar Lumens (XLM) has already marked a significant milestone, with a remarkable 30% price recovery. Trading around $0.45, XLM has surged as it breaks above the 50 EMA (Exponential Moving Average), a key technical indicator signaling potential trend reversals and renewed bullish momentum.

The 50 EMA holds historical significance for XLM, as past price actions suggest that crossing this line often signals the end of bearish phases and the beginning of a more persistent upward trend. With the current market sentiment improving and increased trading activity, XLM has gained substantial traction, positioning itself for further gains. The psychological $0.50 level remains the next technical resistance target, with a breakout above this threshold paving the way for a potential rally towards $0.60.

However, investors should stay cautious, as any failure to hold above the 50 EMA could prompt a retracement, with support levels to watch at $0.39 and $0.30.

Bitcoin’s Struggle to Maintain Momentum

Bitcoin (BTC), while still holding steady around $96,700, faces challenges in 2025. Despite holding a portion of its late-2024 rally momentum, Bitcoin is struggling to maintain strength above the 50 EMA, which has historically been a key indicator of market trends. The inability to sustain this level raises concerns about the sustainability of its bullish trend.

Bitcoin’s ability to break through the $100,000 resistance remains uncertain. To achieve this, stronger buying pressure is needed. If Bitcoin fails to reclaim important support levels like $95,000 and $92,000, it could face prolonged consolidation or a downturn. Institutional interest and growing cryptocurrency acceptance offer cautious optimism for Bitcoin’s future price trajectory.

Shiba Inu Breaks Resistance but Faces Uphill Battle

Shiba Inu (SHIB) has also made headlines by breaking through the 100 EMA, a critical resistance level. However, despite this move, short-term upside remains limited. With SHIB trading around $0.00002326, its path to further growth faces significant hurdles, including the 50 EMA, which may act as the next barrier. Unless SHIB sees a surge in buying pressure, the asset might retrace toward the 200 EMA at $0.000021.

The recent price movement suggests consolidation rather than a strong rally, and SHIB’s reliance on speculative trading may limit its growth unless a fundamental catalyst emerges. For now, SHIB’s prospects appear constrained, with potential fluctuations driven by market-wide volume changes.

Also Read: Stellar (XLM) Poised for Growth: Analyst Predicts 471% Rally Amid Key Partnerships and DeFi Expansion

As we start the year, the cryptocurrency market is showing mixed signs of optimism. Stellar Lumens leads the way with a strong recovery, while Bitcoin and Shiba Inu face challenges in maintaining momentum. For investors, the focus should remain on key technical levels, with an eye on XLM’s potential for further growth and Bitcoin’s struggle to break past significant resistance.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.