After dropping 30%, the AUDIO price has found significant trend support, which could set the scene for a material move higher or lower. Decentralized music streaming platform Audios (AUDIO) was a star performer in July and August. Between the 20th of July and the 17th of august, the platform’s AUDIO token jumped 430% to a five-month high of $4.16. However, this week, the AUDIO price is 50% lower.
Audius attracted a lot of interest last month when it announced it raised $5.5m from several high profile music industry investors, including Nas, Katie Perry and Jason Derulo. However, AUDIO has been unable to maintain the bullish trajectory and has consistently struggled above $3.00. As a result, the price has tracked back to a rising trend line from the July low.
The daily chart shows a rising trend from July is supporting the price at $1.98. Countering the support, a descending trend line offers resistance at $2.76. Subsequently, a symmetrical triangle pattern has formed. The 200-day moving average at $1.80 and the 100-day at $1.75 add significant price support. Therefore, bulls may be encouraged to add length at the current $2.13 price, targeting a 40% upswing to trend resistance.
However, should AUDIO drop below $1.75, it would constitute a breakdown. In that event, the price is vulnerable to a 60% drop to the June low of $0.57. Considering the confluent support and Bitcoin’s (BTC) stability this morning, the bullish argument carries more weight. Nonetheless, the crypto market is still skittish, and therefore, a breakdown cant be ruled out.
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