A so-called meme cryptocurrency named after Tesla and SpaceX CEO Elon Musk is rising in value, namely by a whopping 3,780% in October.
Dubbed Dogelon Mars (ELON), the cryptocurrency reached $0.00000233 Saturday — its highest level since May 13 — after opening the month at $0.00000005 (data from Poloniex).
The massive upside move pushed Dogelon Mars’ market capitalization from around $26 million on Oct. 1 to as high as $1.19 billion on Oct. 30, thus making ELON the 92nd-largest cryptocurrency in the world by market cap.
What launched ELON price to the moon?
A major portion of ELON’s October gains came from its performance on Oct. 29 and 30, when the token rallied by more than 200% alongside a listing on OKEx and Crypto.com on Oct. 29.
ELON’s impressive gains come amid an ongoing retail mania across Dogecoin-like memecoins.
Most notable is Shiba Inu (SHIB), a Dogecoin-inspired joke cryptocurrency that rose by more than 850% in October to attain a market cap of around $38.50 billion and even surpassing Dogecoin (DOGE) itself.
Similarly, Samoyedcoin (SAMO) surged by around 2,925% to reach a market valuation of around $458 million. Hoge Finance’s (HOGE) rallied by 2,923% in October to become a $458-million asset in comparison to $15 million at the beginning of this month.
“Whenever one of these coins starts to pump a little bit, everyone starts to think this could be the next nonsensical rally,” Eric Wall, chief investment officer of cryptocurrency investment firm Arcane Assets, told the Wall Street Journal.
“It’s a casino, and it’s more fun than a roulette table.”
Bull flag in play
Dogelon Mars’ price corrected by almost 30% after topping out for the year at $0.00000233. In doing so, it formed a parallel descending channel that appeared like a bull flag, a bullish continuation indicator.
Bull flags appear as the price consolidates lower after a strong move upside, known as a flagpole. Typically, traders anticipate the price to break above the flag’s upper trendline and rise by as much as the flagpole’s height afterward.
The flagpole’s height in ELON’s case is around $0.00000102.
Related: Bitcoin hodling rate reaches 9-month high, boosting hopes of 'bull flag' rally to $70K
Conversely, if the price breaks below the flag’s lower trendline, accompanied by strong volumes, then it risks invalidating the entire bullish setup. Should it happen, ELON may fall toward its 50-hour exponential moving average (the velvet wave) around $0.00000140.
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