Is the AUDIO Price Building Pressure for an upside breakout?

Summary:

The AUDIO price is fighting hard to resume the failed breakout attempt earlier in the week and catch some upside momentum.

The AUDIO price is fighting hard to resume the failed breakout attempt earlier in the week and catch some upside momentum. Audius (AUDIO) is trading at $2.045 (+3.46%), down -2.56% in October, but around +1,100% year-to-date. There are currently just under 412 million AUDIO tokens in circulation, with a total value of $843 million, ranking it the 109th most valuable cryptocurrency.

Music streaming platform Audius outperformed in August and surged over 300% to a four-month high of $416.82. However, since then, its native AUDIO token has lagged behind its altcoin market peers. Several altcoins, including Ethereum (ETH), have set new record highs in the last few days. However, the AUDIO price is struggling to recover the loss it took on Wednesday when Bitcoin slid below $60k.

Following BTC’s sudden drop, Audius slipped 14% and reversed a trend breakout. As a result, the AUDIO token lost the support of the 50, and 100-day Moving Averages(DMA’s). Fortunately for the bulls, the price bounced from the significant 200-day average and is trying to break out again.

AUDIUS Price Forecast

The daily chart shows the price respects a descending triangle pattern. Earlier in the week, AUDIO had breached the top edge of the formation, which typically leads to an upside expansion. However, BTC’s weakness derailed the breakout. Therefore, the trend, aligned with the 100 DMA at $2.085, is now the first resistance. The 50-DMA, above the trend at $2.1773, offers the next interim resistance level. However, if the AUDIO price successfully clears the trend, the 50-day should easily succumb.

In that event, Audius should extend towards the September high at $3.234. For now, the price is still below the trend, and therefore, vulnerable to a downside reversal. Below the market, the 200-DMA at $1.774 and trend support at $1.660 are the biggest obstacles for the bears to overcome. As long the price stays above the trend and 200-day, the upside looks favourable. Subsequently, a close below $1.660 invalidates the bullish outlook.