Elon Musk-named memecoin ‘Dogelon Mars’ gains nearly 4,000% in October

In October, the value of a so-called meme cryptocurrency named after Tesla and SpaceX CEO Elon Musk increased by 3,780 percent.

After beginning the month at $0.00000005, the cryptocurrency Dogelon Mars (ELON) reached $0.00000233 on Saturday, its highest level since May 13. (data from Poloniex).

Dogelon Mars’ market value soared from roughly $26 million on Oct. 1 to as high as $1.19 billion on Oct. 30, putting ELON the world’s 92nd-largest cryptocurrency by market capitalization.

What launched ELON price to the moon?

The performance of ELON on Oct. 29 and 30, when the token rose by more than 200 percent in conjunction with a listing on OKEx and Crypto.com on Oct. 29, accounted for a large percentage of the token’s October gains.

The significant gains in ELON come amid a shopping craze sweeping Dogecoin-like meme coins.

Shiba Inu (SHIB), a Dogecoin-inspired joke cryptocurrency, gained more than 850 percent in October to reach a market valuation of roughly $38.50 billion, surpassing Dogecoin (DOGE).

Similarly, the value of Samoyedcoin (SAMO) increased by roughly 2,925 percent to around $458 million. In October, Hoge Finance’s (HOGE) stock rose 2,923 percent to a $458 million asset, up from $15 million at the start of the month.

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“Everyone starts to assume this may be the next ridiculous rise whenever one of these coins starts to pump a little bit,” Eric Wall, a chief investment officer of cryptocurrency investing firm Arcane Assets, told the Wall Street Journal.

Bull flag in play

Dogelon Mars’ price has dropped about 30% since peaking out at $0.00000233 for the year. As a result, it formed a parallel descending channel that resembled a bull flag, indicating a bullish continuation.

Bull flags arise when the price consolidates down following a powerful upward run, which is referred to as a flagpole. Traders usually expect the price to break above the flag’s top trendline and then rise to the height of the flagpole.

In ELON’s example, the flagpole’s height is roughly $0.00000102.

If the price falls below the flag’s lower trendline, followed by high volumes, the entire bullish setup risks being invalidated. If this occurs, ELON may fall to roughly $0.00000140, its 50-hour exponential moving average (the velvet wave).