The massive bull run coincided with similar price increases in Dogecoin-inspired joke cryptocurrencies, most notably Shiba Inu.
In October, the value of a so-called meme cryptocurrency named after Tesla and SpaceX CEO Elon Musk increased by a whopping 3,780 percent.
Dogelon Mars (ELON) reached $0.00000233 on Saturday, its highest level since May 13, after beginning the month at $0.00000005 (data from Poloniex).
Dogelon Mars’ market cap increased from around $26 million on Oct. 1 to as high as $1.19 billion on Oct. 30, making MUSK the 92nd-largest cryptocurrency in the world by market capitalization.
What propelled the ELON price to the moon?
The performance of ELON on Oct. 29 and 30, when the token rallied by more than 200 percent alongside a listing on OKEx and Crypto.com on Oct. 29, accounted for a large portion of the token’s October gains.
ELON’s impressive gains come amid a retail frenzy in Dogecoin-like meme cryptocurrencies.
Shiba Inu (SHIB), a Dogecoin-inspired joke cryptocurrency, rose more than 850 percent in October to a market cap of around $38.50 billion, surpassing Dogecoin itself.
Top meme cryptocurrencies in terms of market capitalization. CoinMarketCap is the source.
Similarly, Samoyedcoin (SAMO) increased by approximately 2,925 percent to a market capitalization of approximately $458 million. Hoge Finance (HOGE) increased by 2,923 percent in October to become a $458 million asset, up from $15 million at the start of the month.
“Everyone starts to think this could be the next nonsensical rally whenever one of these coins starts to pump a little bit,” Eric Wall, chief investment officer of cryptocurrency investment firm Arcane Assets, told the Wall Street Journal.
“It’s a casino, and it’s more entertaining than a roulette wheel.”
There is a flag in play.
After reaching a high of $0.00000233 for the year, the Dogelon Mars price dropped by nearly 30%. As a result, it created a parallel descending channel that resembled a Bull Flag, a bullish continuation indicator.
Bull Flags appear when the price consolidates lower following a strong upward move, also known as a Flagpole. Traders typically expect the price to break above the Flag’s upper trendline and then rise by as much as the Flagpole’s height.
In the case of ELON, the height of the flagpole is approximately $0.00000102.
In contrast, if the price breaks below the Flag’s lower trendline, accompanied by high volumes, the entire bullish setup is at risk of being invalidated. If this occurs, ELON may fall to its 50-hour exponential moving average (the velvet wave) of $0.00000140.