Should you buy Audio as the bulls make a return?
Audio (AUDIO/USD) has fallen by over 50% from its highs and is now finally showing signs of a reversal. It has been falling continuously since November and has finally taken support at the $1.3 price zone. Audio is an ERC-20 governance token that powers the Audius protocol. It is built on an Ethereum compatible blockchain, similar to that of Polygon (MATIC/USD). It allows holders of the token to have a say in new projects, providing them with voting rights.
It is now looking like Audio will be heading towards the $2 mark, thus this could be a great opportunity for investors to enter in Audio, however, investors must be cautious and not enter too early as Audio could still fall further down. Should you buy Audio in hopes of a target of $2?
Here is what the charts are pointing towards-
Audio broke out from a symmetrical triangle earlier in November however it was not able to sustain the breakout and fell sharply soon later. It broke down from a crucial support level at $1.8, which resulted in Audio falling even further down to $1.4.
Audio has taken support from the support zone at $1.4 and it is looking like it could be the point of reversal for Audio, thus an entry can be taken soon.
A bullish RSI can also be seen, which is pointing towards a reversal and could also be the start of a rally to the $2 zone.
Investors can set a target of $2, followed by $2.6 in the coming months.
Investors must be cautious as Audio has been very weak in the past few weeks thus it could fall further down thus a stop-loss must be maintained below the zone.