BEAT became the newest trendy project on BNB Chain.
Audiera [BEAT] rose by more than 84% at press time, with its debut only a month ago. This increase brought the total gains over the past 30 days to more than 480%.
BEAT entered the top 100 cryptos by capitalization as per CoinMarketCap after this spike in valuation. What is driving the token’s rise in weak market conditions?
Why is BEAT price surging?
The price of BEAT was driven by speculative futures trading, where about $20 million was executed on DEX platforms alone. The daily trading volume was also up by 33%.
To be specific, there were more buyers than sellers, with figures at 45,456 against 38,355. This translated to a bullish market sentiment as per Dune Analytics data.
Source: Dune Analytics
The supply dynamics also played a big role in this surge.
As per on-chain data, only 16% of the total supply was in circulation, which was equivalent to 160.51 million BEAT tokens.
This meant there was scarcity, which is usually bullish if demand is high. The price trajectory confirmed there was demand.
The AI-driven token burns further reduced the circulating supply, thus fueling deflationary pressure. The ecosystem’s AI payment integration generated revenue, facilitating these burns.
Where is the price headed?
The price action charts were a reflection of what was going on around the token. BEAT price rose to an all-time high of around $3.
Since its launch, the altcoin has been in a healthy uptrend, as seen in its price structure. The trend followed a two-week consolidation that broke out in early December.
However, BEAT is struggling to breach its ATH. This was evident from the capital outflow as Chaikin Money Flow (CMF) declined by 50%, that is, from 0.40 to 0.20.
Source: TradingView
Additionally, sellers were in control of movement over the past two days. The MACD showed that buying had cooled down during this period, but bulls were starting to make their way back.
For BEAT to rise higher, it has to successfully breach its peak. Otherwise, bears may push the price back to the $1.25 support level that has defended the decline three times.
Is liquidity below an issue?
Looking at the liquidity concentration to gauge potential direction, BEAT would most likely drop if bulls did not maintain the momentum.
More liquidity clusters were forming below the current price than above it, as per CoinGlass data.
If price follows the liquidity in close proximity, then BEAT could drop toward or below the $2.40 level. Cumulative liquidation leverage below the current price was more than $1 million, making it a key price magnet.
Source: CoinGlass
Conversely, the cluster around $2.87 would be the next target. This concentration was about half a million US dollars.
Thus, BEAT’s next direction was dependent on more than liquidity, technical breakout, and fundamentals. Participants’ sentiment was also key.
Final Thoughts
- The 84% surge by BEAT token was driven by token AI-driven burns, buying activity, and volume.
- BEAT’s market structure and sentiment were bullish, but liquidity clusters below price threatened appreciation.
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