Dogecoin failed to develop sustainable upside momentum after Teslanews and pulled back towards the $0.17 level, which is a major disappointment for the bulls.
Meme Coins Are Moving Lower
Shiba Inu has also failed to develop sustainable upside momentum after a rumor about a potential Robinhood listing.
It should be noted that other leading cryptocurrencies are also under pressure. Bitcoin is currently testing an important support level at $42,600 while Ethereum has recently managed to get back below the $3,300 level.
The recent moves indicate that the general crypto market mood remains bearish. In a bullish environment, Teslas decision to accept Dogecoin as payment for merchandise or a rumor about potential Shiba Inu listing on Robinhood would have provided material support to meme cryptocurrencies.
However, the rallies in Dogecoin and Shiba Inu were quickly sold, which indicated that traders were waiting for such rallies to get out of their positions. Previously, such rallies would have been used to build positions in a bet that the positive momentum would remain intact.
This is a worrisome development for Dogecoin bulls, and it looks that more support from the general crypto market is needed to push Dogecoin higher.
Dogecoin Tests Support at the 20 EMA
Dogecoin managed to settle below the support level at $0.1750 and is testing the next support level which is located at the 20 EMA near $0.17.
In case Dogecoin manages to settle below the 20 EMA, it will gain downside momentum and move towards the next support level at $0.1650. A move below the support at $0.1650 will push Dogecoin towards the support at $0.16. If Dogecoin gets below the support level at $0.16, it will head towards the support at $0.1550.
On the upside, the previous support at $0.1750 will serve as the first resistance level for Dogecoin. In case Dogecoin manages to get back above this level, it will head towards the resistance at the 50 EMA at $0.1810. A move above the 50 EMA will signal that Dogecoin is ready to develop additional upside momentum.
Taking a look at H1 chart, we can see that Dogecoin has been stuck near the 20 EMA for some time. If Dogecoin manages to settle below the 20 EMA, it will have a great chance to develop material downside momentum in the near term.
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