Axie Infinity bulls are licking their wounds after AXS price takes 35% nosedive

  • Cryptocurrencies were on the chopping block yesterday.
  • Price action in AXS got rejected at $92 and offered an opportunity for sellers to take over. 
  • Axie Infinity is stabilizing and looking for support.

Axie Infinity (AXS) has had a negative week, with the most significant loss occurring yesterday. AXS shedded 35% of its value in just one session, and overall Axie Infinity has lost 45% of its value in just five days. 

On September 4, everything looked excellent, and good opportunities were offered in AXS price action. Sentiment, however, shifted rapidly on September 5, where buyers got a rejection around $92, and price action bounced off the monthly R1 resistance level. Since then, sellers took over violently and ran Axie Infinity further down. The first big break came when both the $85 level and the green ascending trend line got broken to the downside. Buyers attempted to regain control by buying back and pushing AXS above that same green ascending trend line once again. They failed though and got caught in a dead-cat bounce. What followed was the biggest losing day on record this year for Axie Infinity.

Let the dust settle and wait for a sign of recovery in global markets

The past few days in Axie Infinity are not a standalone story. Global markets are also facing headwinds, with investors worrying and stocks having difficulties keeping the global rally going.

AXS/USD daily chart

AXS/USD daily chart

Expect a retest of $60 as the pivot above at $64.60 does not seem to be holding any importance.  $60 should already be an excellent level to support price action. Certainly, sellers will already try to book profit here.

Further down, a solid entry would be, of course, $44. That level is still quite far away, and the fall might be halted as buyers step gradually back into AXS price action. Around $56 looks attractive with the 55-day Simple Moving Average (SMA) coming in. That looks to be proven yesterday as any other downside levels were not reached, and buyers saw the break of that 55-day SMA as a queue to start buying and building up a position again.


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

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

AVAX price edges closer to 40% breakout as Avalanche allocates $3 million to Stake DAO

AVAX price is teetering below the upper trend line of a parallel channel, hinting at a breakout. A decisive close above $61.09 will confirm the start of an uptrend to $75.32. Avalanche Foundation is allocating $3 million as incentives across all Stake DAO Avalanche strategies.

More Avax news

Bitcoin investment inflows soar as analysts predict another BTC ETF launch later this week

The first Bitcoin ETF is ready for its debut on the NYSE on October 19, marking a significant milestone in the crypto industry. A Bloomberg analyst suggests that another Bitcoin ETF could begin trading later this week ...

More Bitcoin news

Litecoin Price Prediction: LTC on the cusp of 26% breakout

Litecoin price is on the penultimate leg of a technical formation that will catalyze a quick bull rally. LTC needs to clear one critical hurdle to kick-start a run-up to levels last seen more than a month ago. A breakdown of $165.28 will create a lower low, invalidating the bullish thesis.

More Litecoin news

US Treasury highlights crypto as threat that could harm efficacy of sanctions

The US Treasury Department has issued a review of sanctions for 2021, expressing some concerns that could undermine its strength and trust. ryptocurrencies were viewed as a threat as its adoption continually increases. The department stressed the need for better communication and ...

More Shiba Inu news


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast