- ELON retraced toward the 78.6% Fibonacci level after strong weekend gains.
- The MVRV and mean coin age underlined selling pressure and short-term bearishness.
Dogelon Mars [ELON] witnessed a 252% price gain on Sunday but has retraced a good chunk of those gains since then.
It is likely to retest the $0.000275 level (ELON market prices multiplied by 1000 for legibility) but a deeper dip would heavily dent the chance of a bullish continuation.
ELON trading at key long-term levels
Source: ELON/USD on CoinMarketCap
The $0.000288 and $0.000337 levels have been important since March and April 2024.
These were levels that had acted as support on the daily timeframe, and their loss sent the meme coin spiraling into a strong downtrend.
The strong gains posted on Sunday the 19th of January have seen a major retracement. The 61.8% level has been ceded to the sellers, and the 78.6% level at $0.000275 was likely to be retested soon.
The MACD formed a bearish crossover above the zero line to indicate bullish momentum was weakening. Meanwhile, the CMF slid below -0.05 on the hourly chart to reflect significant capital outflows.
Source: Santiment
The short-term market sentiment was bearish for Dogelon Mars. This was reflected by the on-chain metrics as well. The mean coin age had been trending higher in recent weeks.
On the 7th of January, it plunged lower, reaching the lows from late October.
This was a sign of distribution beginning before the recent rally. The strong gains on Sunday pushed the mean coin age lower once more.
Read Dogelon Mars’ [ELON] Price Prediction 2025-26
It also saw a dormant circulation spike, showing increased token movement between addresses, likely for selling.
The 30-day MVRV ratio also shot higher to indicate short-term holders were at a sizeable profit. This was another sign that we can expect selling in the short-term and could drive ELON prices lower.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
