- Audius (AUDIO) token experiences a significant surge, rallying over 65% in just two days.
- The rally was driven by Audius being listed as one of the top 14 music tech companies to watch by Business Insider.
- Despite the impressive rally, AUDIO faces a critical resistance level at $0.30, raising questions about its ability to sustain the upward momentum.
Audius (AUDIO) token surges over 65% in two days, but faces critical resistance at $0.30. Can the bulls push through?
Audius Token’s Impressive Rally
Audius, a decentralized music streaming platform, saw its native token AUDIO rally by over 65% in just two days. This surge was largely attributed to Audius being featured on Business Insider’s list of the top 14 music tech companies to watch. The token’s trading volume also skyrocketed by 6900% within a 24-hour period, according to CoinMarketCap. This sudden influx of interest and trading activity has flipped the higher timeframe market structure to bullish, but the price has hit a significant roadblock at the $0.30 level.
Challenges at the $0.30 Resistance Level
On the daily chart, the $0.30 level is marked by a bearish order block and falls within the 50% and 38% Fibonacci retracement levels. Despite the bullish market structure, the bulls need to push above this critical resistance to establish more leverage. If the rally cools off, AUDIO could retrace to $0.25 or even $0.20 before making another attempt to break through the $0.30 barrier. The bullish readings on the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) indicators support the possibility of a rebound, indicating strong buying pressure and capital inflows.
Liquidity Concerns and Key Price Levels
According to Coinglass’ liquidation data, significant clusters of liquidity are concentrated at lower price levels, specifically around $0.20 and $0.15. This suggests that the price could dip to these levels to collect liquidity before attempting another upward move. Therefore, $0.20 and $0.25 are crucial levels to watch in the short term. If the bulls fail to hold the $0.25 level, AUDIO could drop to $0.20, especially if Bitcoin’s pullback extends below $66k.
On-Chain Metrics and Market Sentiment
Despite the challenges, key on-chain metrics are flashing bullish signals. The supply of AUDIO on exchanges has dipped, while the supply outside of exchanges has spiked, indicating reduced sell pressure and increased demand. Additionally, the positive weighted sentiment reading underscores the market’s bullish outlook on AUDIO. However, the market liquidity hunt at $0.20 or below $0.25 remains a key action to watch, especially if the $0.30 resistance is to be targeted again.
Conclusion
In summary, Audius (AUDIO) has experienced a remarkable rally, driven by positive news and increased trading activity. However, the token faces a critical resistance level at $0.30, which it must overcome to sustain its upward momentum. Key price levels to watch are $0.25 and $0.20, as the market may dip to these levels to collect liquidity before making another attempt to break through the $0.30 barrier. On-chain metrics and market sentiment remain bullish, but the coming days will be crucial in determining whether AUDIO can maintain its upward trajectory.
