Why does ELON bark the loudest after choking DOGE and SHIB?
Meme coins have consistently failed to scare people with sudden exponential price increases. Amid general market optimism, some joke coins have done exceptionally well recently. Among them, ELON has so far drawn attention.
ELON 4-Hour Price Chart | Source: Tradingview
Since October 1st, this altcoin has risen more than 1,200%. So if you had invested $ 100 at the beginning of the month, you would have unrealized gains worth $ 1,200 at that point.
With a market capitalization of over $ 330 million, ELON is the third largest meme coin and is currently just behind DOGE and SHIB. In addition, according to CoinGecko, ELON was the most traded coin on the Uniswap v2 market in the past 24 hours.
ELON also surpassed the 75k HODLer benchmark – which is quite remarkable for a supposedly random coin.
HODLer’s loyalty test
However, at this point it is important to assess the general sentiment of the ELON community to see if the uptrend can continue.
To do this, first assess the average age of ELON.
Technically, the upward slope of the above metric indicates broader accumulation / HODL bias among market participants. On the other hand, a drop means more tokens are being moved between addresses.
This indicator shows that ELON is continuously moving upwards according to the ladder pattern. However, in the first few days of October, the median age fell as prices rose, suggesting a small sell-off. Although the upward trend continued thereafter, it soon followed a similar trend again when the price began to rise in the current week.
Notwithstanding the slight downtrends that may appear on the chart below, it should be noted that the uptrend appears to be intact in the macro timeframe. This means that ELON’s loyal community is always supportive.
ELON price (green) and average coin age (pink) | The source: mood
Since the average age has only decreased slightly, it should be noted that the number of HODLers leaving was compensated for by new entries in the ELON market.
In fact, exchange outflows are also increasing, suggesting increased demand and tokens from centralized, decentralized exchanges that are being relocated to private wallets. In summary, both new and old HODLers were able to jointly increase the pressure to buy.
ELON price (green) and drain (red) | The source: mood
Social sentiment is positive around the multi-month highs at the time of writing. Social mass and social dominance rate play an important role in increasing the hype among other community members. Newbies often jump into the race for fear of missing out, and the price is sure to keep rising.
If the discussions on the social media platform are heated up further and the pressure to buy increases, ELON will at least be able to continue the upward trend for a few more trading sessions.