Axie Infinity looks primed for a 35% drop toward $50
- AXS price action faces resistance between $70 and $75.
- A failure to return to $77 could trigger a drop to $50.
- Little to no support exists between $65 and $50.
Axie Infinity price action shows that bulls have difficulty pushing it back into bullish territory. AXS is presently up to $13.22 (+24%) from the flash crash low, but strong follow-through by the bulls has much to be desired.
AXS price action looks stalled; bears can easily take control
AXS price action has been halted from making a return to bullish conditions by three primary technical data.
The daily Kijun-Sen and Tenkan-Sen (both at $75.34) and a high volume node in the volume profile at $72.00. Another contributing factor is the Relative Strength Index tagging resistance at the first overbought condition in a bear market (55).
While AXS is not in a bear market, it is essential to recognize that the RSI is halted up against 55. This is the first warning sign that the current bull run may be under threat from terminating.
If the Chikou Span closes below the candlesticks (at or below $64), then AXS price will likely have a swift move towards the next support level at $50. The volume profile thins out considerably between $65 and $50.
AXS/USDT Daily Chart
While AXS price is near-term bearish, bulls shouldn’t be over discouraged yet. It will not take much to buoy AXS back into bullish territory.
The bearish outlook will undoubtedly be canceled if bulls can rally AXS above the Tenkan-Sen and Kijun-Sen - ideally above the all-time high close of $82.30. There is a slight hidden bullish divergence between the candlestick chart and the Composite Index and that may be all the nudge AXS price needs to rally higher.
Author
FXStreet Team
FXStreet
