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A huge fall was seen in numerous cryptocurrencies on Wednesday, coins were trading over 10% in the red and Audio (AUDIO/USD) was of them. Audio is trading over 10% lower this week and this could be a great opportunity to buy the dip.
A look at the chart for this month-
- Audio has fallen by over 15% since Tuesday however buying in high volumes was seen on Wednesday when Audio was down over 20% and took support from the 200 day moving average.
- A possible shakeout was seen on Wednesday when the price fell down to 20% and recovered back 10% in almost no time, this could be a sign that a bullish move is coming soon.
- Audio also took support from a demand zone at $1.9, and as long as Audio is trading above the zone long entries can be taken, and stop-losses can be kept below the zone.
- Audio has formed a descending triangle, and a long can be taken at the demand zone at $1.9 and investors who want a safer entry point can wait for a breakout above $2.3.
- Targets can be set at $2.6,$3.1 and a new all-time high for investors willing to hold Audio for a longer period.
Should you enter Audio on Wednesday?
- Audio has formed a bullish divergence on Wednesday, that is suggesting that a reversal should be seen soon.
- A long entry can be taken once a breakout is seen from the wedge at $2.030.
Conclusion
The dip is looking like a great reversal to buy Audio, however, investors must be patient and wait for a clear reversal as Audio could still break down from the crucial demand zone at $1.9.
However, if a reversal is seen this could be a great entry point and some great targets could be achieved in the coming weeks and months.