Audiera [BEAT] has obliterated overhead resistance levels and put fear in bears who thought that the rally was overextended. The altcoin has posted only green trading days since Wednesday, the 3rd of June.
It has gained 692% since then, and was up by 60.6% in just the past 24 hours. This kind of rally was not expected.
In a recent report, AMBCrypto noted that BEAT had bullish potential, provided it can overcome the $1.5 local supply zone. A week later, this local resistance has been demolished alongside many others as the altcoin neared the $10 mark.
Traders have reason to remain bullish until the eventual sell-off, but they should remember that this musical chairs game ends when sentiment and capital flows dry up.
BEAT bulls dance to their own tune
Bitcoin [BTC] has been up by 6.80% since the low at $59,141, made on Friday, the 5th of June. The rest of the altcoin market’s market cap has only climbed by 5.03% since the recent lows.
By comparison, BEAT was up 480% since the low made on the 5th of June. The contest was not even close.
The RSI and Awesome Oscillator indicators were heavily overbought, but did not show a noticeable divergence yet. The consecutive green days must end sometime, but until it does, any short-selling would be as dangerous as trying to catch knives.
It might be better to wait for a lower timeframe exhaustion signal.
On a different note, the Audiera token’s circulating supply is only 28.8% of a maximum supply of 1 billion tokens. The altcoin was already at a $2.46 billion valuation.
Investors should remember the recent pump and dump sagas that coins such as RaveDAO [RAVE] witnessed recently.
Bearish divergence can see a BEAT setback
The RSI on the hourly chart made a lower high while the price advanced higher (orange). This classic divergence signal suggested that momentum was overextended.
A word of caution to traders. The market does not always react to divergences, especially when the momentum refuses to slow.
It might be better if traders stayed long instead of trying to sell. Staying sidelined if not already in a position would also be ideal.
Final Summary
- Audiera has posted nine consecutive green days of trading candles so far.
- Green streaks eventually break, but traders shouldn’t try to catch the correction before it comes about.
