• AXS price seems to be taking a hiatus and hints at a correction after an exponential run-up.
  • Axie Infinity announced its e-sports grant with 5,000 AXS as the prize pool.
  • A retest of the all-time high at $29.09 or a move higher will invalidate the bullish outlook.

Axie Infinity price has triggered a corrective phase after a massive rally. The trading range’s midpoint might act as a foothold that could deter the downswing or even reverse it.

AXS prize pool worth $109,000

Axie Infinity is a blockchain-based trading and breeding game that has racked up popularity during the recent cryptocurrency market slump. Adding a tailwind to this newfound fame is the AXS token’s 800+% upswing over the past 24 days.

In order to capitalize on this wave of hype, Sky Mavis developers have announced a dedicated server for competitive gameplays. To this end, the company has also set aside 5,000 AXS tokens, currently worth $109,000, as a prize pool for the winners.

Axie Infinity also added that it would start accepting community tournament organizers’ proposals between July 15 to July 29. Touching on the exponential growth of the game, the announcement reads,

This amazing growth has created some new challenges when it comes to scaling our game servers. As a result, the challenge server that is usually available for scrimmages and tournament matches has been offline.

While this step from the developers might help increase the interaction with the community, technicals are hinting at a correction.

AXS price looks to pull back

AXS price rallied 811% between June 21 and July 16, hitting a new all-time high at $29.09. However, the Momentum Reversal Indicator (MRI) flashed a red ‘two’ candlestick on July 15. This setup forecasts a one-to-four candlestick correction, which is already being witnessed as Axie Infinity price has dropped 26% from its peak.

If the selling pressure continues to increase, AXS will likely crash another 27% until it tags the 50% Fibonacci retracement level at $15.98. The bulls have a chance to defend this level from the sellers and kick-start a bullish ascent if possible.

A failure might lead to a retest of the 62% Fibonacci retracement level at $12.84. However, in a highly bearish case, Axie Infinity price might tag $10.61.

AXS/USDT 1-day chart

AXS/USDT 1-day chart

While the downswing seems plausible, a potential increase in buying pressure that recovers the recent slump will increase the chances of a reversal.

If the bullish momentum is high enough to propel Axie Infinity price to retest the all-time high at $29.09, it will signal the resurgence of buyers. Such a move might proceed by a surge in buying pressure that breaches the peak to invalidate the bullish thesis.

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Why Polygon’s MATIC bulls could be too eager and drop the ball on this rally

Polygon (MATIC) price action has been on treading nervously this week, with weekly earnings switching back and forth between profit and loss. It all comes down to trading this Friday to see if bulls can eke out a winning week.

More Polygon News

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

How can traders squeeze in more gains as Shiba Inu price teases a 42% rally

Shiba Inu price positively reacted to the United States inflation report, forming a bullish candle on its daily chart. The second-largest meme coin brushed shoulders with $0.00001287 but pulled back to test support highlighted by the 100-day Simple Moving Average (SMA) at $0.00001170.

More Shiba Inu News

CRO price sees bulls using their last ammunition to attack $0.16

CRO price sees bulls using their last ammunition to attack $0.16

Crypto.com Coin (CRO) price action is looking to execute a bullish breakout above $0.16. Ignorant bulls will try to be part of that rally, but that could prove a big mistake as a few risks need to be taken into account to be sure that this rally still has legs.

More Crypto.com News

Solana traders’ focus on $58 as the rally starts to slow down

Solana traders’ focus on $58 as the rally starts to slow down

Solana (SOL) price action is set to close out the week with a mere 7% gain depending on where it ends  Friday evening after the US closing bell. Overall it has been a good trading week from a fundamental perspective and technicals in a supporting role.

More Solana News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP