Axie Infinity price could make a turnaround at this level before a 30% recovery rally
|- Axie Infinity price coils up for a recovery rally after a steady decline beginning January 23.
- Recent recoveries above the identified support level forecast that AXS could move 30% upward.
- Invalidation of the bullish thesis will occur on a decisive flip of the $7.82 support level into a hurdle.
Axie Infinity price (AXS) has been trading with a bearish bias since January 23, after investors engaged in a load-shedding exercise. The gaming token suffered a highly volatile market that canceled every bullish push with twice as much bearish pull. As a result, AXS plummeted to levels last seen around November when crypto exchange FTX imploded.
The positive indications for Axie Infinity price come amid a promising alt season combined with chatter about the Game Developers Conference (GDC), a premier professional event, championing game developers and the advancement of their craft.
Axie Infinity Price readies for a recovery rally
Axie Infinity price bounced from the $6.99 support floor on March 10, kickstarting a northbound move that saw the gaming token restore above the crucial $7.82 support level. Notice that this supplier congestion level has played a crucial role several times before for AXS. The asset bounced off from this level in November and January, marking the beginning of a notable uptrend.
Accordingly, investors should expect Axie Infinity price to use the abovementioned level as the jumping-off point for the next rally, possibly within the weekend or early next week.
A northbound move for Axie Infinity price would mean a flip of the 100-, 200-, and 50-day Simple Moving Averages (SMAs) at $8.95, $9.44, and $9.57, respectively, into support. A decisive flip of the first should confirm the momentum of the recovery rally.
Past the SMAs, Axie Infinity price could tag the $10.10 resistance level, denoting a 29.58% increase from current levels. AXS could extend further in highly bullish cases to tag the $12.18 resistance level last tested in January.
Possible deals could fuel the recovery rally for Axie Infinity price after gamers and investors met in San Francisco for the GDC, causing some broad capital inflow to filter now that they have dispersed.
AXS/USDT 1-day chart
Nevertheless, given the extremely cyclical nature characteristic of Axie Infinity price, the token could plunge further in market value, first shattering the $7.82 support level. A daily candlestick close below this level could invalidate the bullish thesis.
Evidence of this cyclical nature of Axie Infinity price is the Relative Strength Index (RSI), where the gaming token clearly each time goes through a downtrend cycle with a bounce toward an uptrend cycle. The altcoin could plunge further, given its current position, before a possible trend reversal.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.