Elon to Mars or to drop dead?This weekly price action of Dogelon Mars (ELON) against Tether (USDT). Here's a detailed technical analysis based on my above chart:
Descending Triangle Breakout (2022-2023) : The price formed a descending triangle, which is typically a bearish continuation pattern. However, in this case, it led to a breakout to the upside in early 2023.
Ascending Channel (2023-2024) : Post-breakout, the price action has been following an ascending channel, with higher highs and higher lows. The channel is marked by two parallel trendlines indicating a gradual upward trend.
Resistance Levels:
0.0000002383 USDT : This level acted as resistance multiple times. The price struggled to break above it in May 2023 and again in early 2024.
0.0000003992 USDT : This level marked a significant resistance point and a potential target for the next upward movement.
0.0000005180 USDT : This is the major resistance level to watch if the price breaks above the 0.0000003992 USDT resistance.
Support Levels :
0.0000001745 USDT : This is the immediate support level. The price has tested this level multiple times, indicating its significance.
0.0000001244 USDT : This is a major support level and acts as the lower boundary of the ascending channel.
The Stochastic RSI at the bottom of the chart is showing a crossover in the oversold region (below 20), indicating a potential bullish reversal. The blue line crossing above the orange line is a buy signal.
Potential Bullish Scenario :
- If the price respects the lower trendline of the ascending channel and the Stochastic RSI confirms a bullish crossover, there could be a rally towards the immediate resistance at 0.0000002383 USDT.
- A successful breakout above 0.0000002383 USDT could lead the price to test the next resistance at 0.0000003992 USDT and possibly 0.0000005180 USDT.
Bearish Scenario:
- If the price fails to hold the support at 0.0000001745 USDT, a breakdown could occur, potentially leading the price to retest the major support at 0.0000001244 USDT.
- A breakdown below 0.0000001244 USDT would invalidate the ascending channel pattern and could lead to further downside.
