DogeThe first few days of 2022 have seen crypto markets turn bullish after a two-month stint in the bearish doldrums. Elon Musk/Dog themed asset $ELON seems ready to rally beyond previous highs.
Our first price action analysis piece of the year – following quite the hiatus – takes a look at Elon Musk themed meme token, DogeElon ($ELON). The digital asset seems to be poised for a renewed rally to new highs, assuming it clears the $0.00000185 resistance level.
At the time of writing, the token is priced at $0.00000166, down – a touch – from a daily high of $0.00000170. At the price level, $ELON is up 3% from a low of $0.00000163. At this point, the assets price appears to be dancing about the $0.00000165 resistance level on the daily chart (according to Poloniex price charts, streamed through TradingView.)
Things could still go either way at this point, though indicators are quite telling of growing market strength. Barring a new round of range-bound price action, the market could either sink to the $0.00000139 support level or begin a fresh challenge of the $0.00000185 resistance level. Which would likely make for a solid base before the token makes a run beyond the $0.00000200 price.
At this price level, the token is up about 17% from a reversal that saw $ELON reach a value of $0.00000138 five days ago. Which is 42% higher than the previous low of $0.00000097, which was established two weeks ago. Higher lows are usually a good sign, right?
The Ichimoku indicator’s Senkou Spans are in a bullish crossover position, while the Chikou – though positioned above the cloud – indicates a third visit to the $0.00000165 price level. Tenkan is well above Kijun at this point which gives us the inkling that this market is well into bullish territory. This is congruent to price action, which recently broke out of a – rather extended – downward wedge pattern.
The stochastic oscillator also, currently, indicates a bullish crossover and is positioned close to the 100 zone, but isn’t quite oversold yet. Which usually ahows that the market is in good health.
The MACD also indicates market health, with the moving averages in a bullish position, and the histogram still quite positive, and rising. This market, ladies and gentlemen, may see the meme coin rise to the $0.00000150 – $0.00000190, possibly even the $0.00000320 price level before a decline in value.