brace for a major pullback
Audius price has been in a strong bullish momentum this week.
It is soaring after the latest listing in Coinbase.
Historically, these exchange-linked rallies don’t last long.
Audius has had a spectacular week but history suggests that the price action could unwind soon. AUDIO, the network’s token could soon nosedive. It soared to a high of $0.366 on Tuesday, its highest level since August last year. According to CoinMarketCap, the coin’s market cap has surged to more than $308 million.
Why a pullback is imminent
The main reason why the AUDIO price has jumped sharply this week is that it was finally launched in Coinbase, the second-biggest crypto exchange in the world. This means that the company’s millions of customers can now buy and hold the coin. Also, they tend to rise as the number of people talking about their rise. That’s why we are talking about Audius today.
Historically, cryptocurrencies tend to jump after being listed by one or more major exchanges. At CoinJournal, we have written severally about these immediate jumps. For example, in this article, we wrote that STG surged after Binance listed Stargate Finance’s token. And in this report, we noted that EOS had soared after the EOS/USDT pair was listed in Binance.
However, these gains tend to be temporary in nature. In some cases, they are usually pushed by insiders who had the information of the listing before it happened. For a thinly traded coin like Audius, a few insiders can easily tilt the balance between demand and supply.
For starters, Audius is a company that seeks to change the music industry using blockchain technology. It is a Spotify disruptor that makes it possible for independent musicians to list their music and monetize it. According to is website, the Jayson Derulo and Katy Perry-backed company, said that it has over 7 million monthly active users.
Audius price prediction
AUDIO chart by TradingView
The other reason why the Audius price is about to pull back is linked to its chart patterns. As shown above, the token has been in a bullish trend in the past few days after it pulled back to a low of $0.2570 on Wednesday. This rebound is part of the coin’s formation of a double-top pattern at about $0.3650. In price action analysis, this pattern is usually one of the most accurate reversal patterns.
Therefore, I suspect that the AUDIO crypto will reverse in the coming days and retest the neckline of the double-top at $0.2565. A move below this level will see the coin drop to the next key support at $0.1975.
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