Audius Price Pulls back to Key Support: Time to Buy the AUDIO Dip?

Summary:

The Audius price has shed 20% over five back-to-back losing days. However, this may offer a cheap entry point for bullish traders.

The Audius price has shed 20% over five back-to-back losing days. However, this may offer a cheap entry point for bullish traders. Audius (AUDIO), the decentralized music-streaming platform, surged in the 3rd-quarter. Audius gained over 600% between June and August after announcing a deal with social media giant TikTok. However, the native AUDIO token reversed from the highs, erasing more than half the gains since.

Audius has ambitious plans to disrupt the music streaming industry, taking on the likes of youtube and Spotify. The goal is to give artists more power and a bigger slice of the $43 billion music business pie. The project has made significant gains over the last year, and the AUDIO price has reacted positively, prompting some crypto analysts to ponder if Audius could be the next big thing. However, after reaching a four-month high of $4.17 in August, the Audius price has struggled. Even the announcement that music industry insiders, including Katy Perry and Nas, had contributed to a $5 million investment failed to lift the price. As a result, AUDIO has spent the last two weeks bouncing between $2.00 and $2.50. This morning, the AUDIO token is doing business at $2.13, just above a critical support area.

AUDIO Token Analysis

The daily chart shows two trend lines are dictating the price action. Above the market, a descending trend line from the August high is currently capping the price at $2.50. Below, a rising trend from July provides support at $1.98. Since August, the price has reversed from both trend lines despite the high volatility, creating a symmetrical triangle formation. Often when the price moves outside of a triangle pattern, a significant move ensues. However, for now, the Audius price respects the triangle.

The 100-day moving average at $1.85 and the 200 at $1.82 reinforce the rising trend. On that basis, I consider the trend support to be robust. As long as the Audius price remains above the 200 DMA, the outlook is bullish and should test trend resistance. Furthermore, if strength in the broader market persists, Audius could clear trend resistance and extend towards $3.00. However, a move below $1.82 invalidates the bullish view and suggests a return to the June low of $0.58 is possible.