The cryptocurrency market is currently grappling with a severe lack of capital inflows, a critical factor undermining the potential for a significant recovery by late 2025. This absence of new investment is leading to a contraction in liquidity and trading volumes, manifesting in downtrends across various digital assets. Several prominent cryptocurrencies, including XRP, Dogecoin, and Shiba Inu, are exhibiting concerning patterns, marked by declining on-chain activity and bearish technical indicators, painting a cautious picture for investors.
XRP Faces Declining On-Chain Activity and Bearish Price Action
XRP's network activity has seen a drastic reduction in recent weeks, signalling a shift in market sentiment and a drop in transactional demand. On-chain data reveals a nearly 90% decrease in XRP’s payments volume from its October peak, now hovering just over 200 million XRP. Concurrently, the number of daily transactions has plummeted from over a million to less than 500,000, raising questions about institutional and network-level usage. Price-wise, XRP has broken below key support levels, trading at $2.41 and struggling beneath its 200-day moving average. Momentum indicators point to a significant loss of buying power, with resistance forming around $2.70-$2.80, and a potential fall towards the critical $2.00 psychological support if current trends persist.
Dogecoin and Shiba Inu Under Pressure as Technicals Weaken
Dogecoin has also experienced a significant setback, with a critical descending triangle pattern collapsing, effectively erasing all its gains from the middle of the year. The breakdown pulled DOGE below its 200-day moving average, signaling a shift in long-term trend momentum. Trading at $0.175, it is perilously close to the next support at $0.16, with a more crucial area near $0.13, and a potential path to $0.10 if these levels fail to hold. Similarly, Shiba Inu remains under increasing bearish pressure, trading near the $0.0000095 zone and consistently failing to reclaim important moving averages. Its long-term trend remains negative, with key recovery requiring a significant improvement in broader market sentiment, potentially fueled by a Bitcoin surge or a revival in meme coin trading cycles, alongside demonstrable utility growth in its Shibarium ecosystem. Without these catalysts, SHIB risks remaining range-bound well into 2025.
