- Audiera price has surged significantly, bringing its market capitalization to over $1.87 billion.
- The rally resembles that of Humanity token, which collapsed on Tuesday.
- Technicals suggest that the token will have a major reversal soon.
Audiera price has gone parabolic in the past few days, making it one of the top gainers in the crypto industry. The BEAT token rose for eight consecutive days, reaching a record high, and its market capitalization hit $1.87 billion. Still, there are reasons to avoid the Audiera crypto token.
Audiera Price Surge Resembles that of Humanity
The ongoing Audiera price surge resembles that of the Humanity token, which recently pumped before crashing by over 90% within a day. For one, the rise is happening at a time when Bitcoin and most altcoins are deeply in the red. Bitcoin price is hovering at $60,000 and is at risk of more downside.
Like Humanity, the Audiera token is surging despite making no major announcement. Its only major announcement came out on Wednesday when the team revealed a partnership to create a World Cup anthem.
In most cases, genuine pumps occur when there is important news about a cryptocurrency, such as when it inks a major deal or receives an exchange listing. Other popular genuine catalysts for a crypto rally are usually a major token burn announcement. In Audiera’s case, it has not made such an announcement.
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A few analysts BanklessTimes spoke with said the rally looks quite questionable, given that Audiera does not have a popular ecosystem in the crypto industry.
Like Humanity and Mantra before it, Audiera’s surge happened in a high-volume environment. Its 24-hour trading volume jumped 122% to $178 million, while short liquidations rose to over $7 million, the highest level since December last year. This low liquidation figure is a red flag. The futures open interest surged to a record high of $280 million.
BEAT Crypto Token Has Become Highly Overbought
Technicals also point to a BEAT token retreat in the coming days or weeks. For one, the Relative Strength Index (RSI) indicates it has become highly overbought, having jumped to 98. In most cases, extremely overbought tokens tend to retreat as investors book profits.
The other technical risk is that the token has moved well above its historical moving averages. This means it may experience mean reversion, a situation in which an asset pulls back sharply toward its historical average.
Another risk is that the coin is now in the markup phase of the Wyckoff Theory. In most cases, this phase is followed by the distribution and markdown phases, during which assets retreat. Therefore, there is a likelihood that the token will plunge by 85% and retest the support at $1.
