The recent bloodbath in the crypto market has brought down the prices of several projects to major support areas on the chart. Similarly, with Dogelon Mars, its price had tagged an important support zone – one which has historically led to positive price action. However, without whale reinforcements and retail interest, the outlook for ELON was still uncertain-bearish over the shorter term.
ELON’s current price range of $0.000000665-$0.000000631 brings back memories of a volatile period in March. During that time, ELON’s downtrend continued for a month until the price tagged its support range. The range led to a reactionary buy phase after which ELON climbed by 99% and hit monthly highs at 227.
ELON was once again in a similar position. Its price shifted south throughout April and had tagged this zone on 9 May. Buy orders were already creeping up after a couple of green candles formed on the daily chart.
Usually, these are ominous signs of favorable price action. However, not all stars were aligned for ELON.
ELON shows lackluster externals
For a coin that is owned in majority by whales, one would expect that ELON’s current level would generate some interest from large holders. However, that wasn’t the case. Data showed that whales still maintained a cautious outlook and weren’t stockpiling ELON tokens during April corrections. At press time, whales held 740 Trillion tokens and the figure was largely unchanged from those seen in March and February.
Meanwhile, retail traders hadn’t jumped the gun either. Although buy-side trades were slightly higher than sell-side trades, there wasn’t enough on-chain volume to warrant a bullish outlook.
Even buying euphoria was also drying up among social media users. ELON’s social volumes climbed up a notch on 10 May but moved south once again in the past 24-hours. On a macro picture, the index was visibly lower than its April peak when ELON had recorded a 42% spike in a single day.
Conclusion
Without the backing of whales and retail traders, the outlook was still bearish over the short term even though major support was in play. The most hopeful outcome a Dogelon Mars trader could wish for was a Bitcoin rally, as a risk-on broader market might beckon traders to look at ELON with more interest.