The world’s third-largest meme coin Dogelon Mars was on par with other rivals during the weekend burst. However, bearish divergence on the RSI was expected. At the time of writing, ELON traded at $0.0000010, up by 12% over the last 24 hours.
Dogelon Mars 4-hour time frame
Dogelon Mars was currently testing the 4-hour 200-SMA (green) after seeing a 20% hike since Sunday. Before a breakout, the price would likely settle just above the 61.8% Fibonacci levels as short-term investors cash in their gains. Bearish divergence on the RSI showed that bulls were already losing market control.
If the resulting correction is successfully negotiated above the 50% Fibonacci level, expect bulls to advance above the 200-SMA (green) with greater conviction. The daily supply zone between $0.0000012-$0.0000011 would offer sellers one last chance to negate ELON’s bullish bias before the price extends to $0.0000014.
The outcome would remain the same if bulls jump the gun and force an early close above the 200-SMA (green). However, it’s worth noting that the Volume Oscillator was trading below its half-line. Hence, any immediate breakouts would most likely be halted at ELON’s supply zone since breakouts on low buy volumes are more vulnerable to a reversal.
Conclusion
Dogelon Mars could see a 5%-8% correction if a 4-hour candle does not immediately close above the 200-SMA (green). However, the said pullback would offer up buy opportunities at the 61.8% Fibonacci level and 20-SMA (red). A rebound from this area would set up a comeback between the $0.0000012-$0.0000011 supply zone.