Axie Infinity price correction to accelerate towards $80
|- Axie Infinity price hammer lower by 30% so far this week.
- Near-term support is almost non-existent within the Ichimoku Kinko Hyo system.
- Thin Volume Profile suggests an acceleration of selling pressure may occur.
Axie Infinity price has certainly not been immune to the massive selling pressure during and after last Saturday's flash crash. While some sub-sectors of the crypto market may recover, Axie Infinity and other metaverse cryptos have further to fall.
Axie Infinity to price drop another 20% to the $80 value area
Axie Infinity price had experienced a significant sell-off well in line with the broader cryptocurrency market. However, because AXS is part of the metaverse token/crypto bubble, its exposure to further downside risks is exceedingly high. That is especially true given its current position.
The 2021 Volume Profile abruptly ends any hint of support at the $102 price level until the $80 - $82 value area. Because the Volume Profile is so thin between $80 and $102, if Axie Infinity price moves below the $102 to level, that space acts as a vacuum and sucks Axie Infinity lower to the next high volume node at $80.
Sharing the $80 high volume node support zone is the weekly Kijun-Sen. If Axie Infinity price hits the $80 support level, the Relative Strength Index will be positioned near one of the oversold levels in a bull market (50 or 40). Further enhancing the support zone is the Composite Index. The Composite Index has created a new all-time low, warning short-sellers that it will likely bounce if AXS approaches any support structure.
AXS/USDT Weekly Ichimoku Chart
Any candlestick close above the $110 value area on the daily or weekly chart would invalidate this bearish outlook. A daily or weekly close at $110 would probably begin a consolidation phase before Axie Infinity price begins another run higher.
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