Audiera [BEAT] As the market digested the token unlocked in early-July, daily trading volumes soared by 78.25%.
On July 1st, approximately 21,25,000,000 BEAT tokens were released. That represents 2.13 % of total supply.
These events can have a significant impact on the price of goods because new stock is introduced into circulation.
However, BEAT Instead of continuing to decline, the company should continue to draw buyers. The reaction indicated that the new supply was absorbed by demand. Investors also focused on Audiera’s tokenomics, which is based around product.
The revenue generated by the platform was used to support a dynamic burning mechanism which permanently removed tokens.
In turn, this deflationary pattern appeared to counteract some of the impact that the release had on the supply, and helped stabilize the sentiment in the markets after the distribution.
Why does BEAT still have the support of top traders?
Binance’s bullish confidence remained apparent despite BEAT’s recent recovery.
The Data of CoinGlass 62.07 % of the top positions of traders were on the long-side, while 37.93% were short.
The Long/Short Ratio was 1.64. That ratio shows how experienced investors continued to prefer higher prices over preparing for an eventual reversal.
Even though the token had appreciated nearly 19% in the last 24 hours, the positioning still reflected confidence.
This unbalanced situation also made it more important to keep support in place, as crowded positions on the long side can magnify volatility whenever there is a change of sentiment.
Buyers continued to dominate the overall positioning, which indicates that traders saw the recent rally more than just a reaction.
As buyers take control, BEAT is reclaiming support.
After buyers protected lower levels, BEAT traded at $2.64.
The Parabolic SAR was shifted below the price. It indicated that after several sessions of weakness, short-term control over trend had been returned to bulls.
Moving Average Convergence Divergence, or MACD for short, painted a much more conservative picture.
The MACD line remains below the line of signal, and the histogram is slightly negative in spite of showing signs that the market has stabilized.
This combination indicated that bearish pressure has eased, but it is not gone completely.
The price also remains below $3.26, another important resistance. This is another obstacle before we can see a wider recovery.
BEAT may challenge resistance at higher levels if buyers continue to control the price above $2.08. A weakening of demand may encourage a test to be made against recently held support.
What is the likely next source of volatility?
The Liquidation Heatmap highlights several liquidity clusters, which may influence BEAT’s next direction.
The concentration of liquidity for short-term liquidation was between about $2.75 and 2.85 dollars, right above the trading range.
The area would be a good price to buy if the buyers kept pushing up because they often accelerate upwards moves.
Another notable liquidity cluster was found below the markets, around $2.45 – $2.50. If the decline falls into this zone, it could lead to long-term liquidations as well as increased selling pressure in a very short time.
The BEAT stock is currently positioned between two important liquidity pockets.
As leveraged trades unwind on both sides of the market, the volatility wave will likely be determined by which cluster price is reached first.
Final summary
- The BEAT has absorbed the token unlocked in July, while strong buyer demand kept them in full control.
- BEAT is likely to move up in price next, based on the bullish positioning of traders and liquidity nearby.
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Source: ambcrypto.com
