Axie Infinity price action indecisive, AXS at risk of a 20% drop

Axie Infinity price has been an exercise in frustration for bulls and bears. Multiple bearish continuation setup and bullish reversal opportunities have developed, with neither side willing or able to capitalize on any move. That activity is expected to continue. However, there is a slight weight given to the bearish side of the market, given where AXS is in the Ichimoku Kinko Hyo system.

Axie Infinity price short-term bias contingent on position within Ichimoku system

Axie Infinity price is at an inflection point. While it remains below the Ichimoku Cloud, it has a naturally bearish bias. Therefore, the difficulty in speculating the next trend direction is based on the current daily close in relation to the Tenkan-Sen and Kijun-Sen.

On the weekly Ichimoku chart (not shown), Axie Infinity price is in the worst place possible: inside the Ichimoku Cloud. The Cloud represents volatility, indecision, congestion, whipsaws, and false moves – it’s the place where trading accounts go to die. The daily chart gives a little more context (barely).

AXS/USD Daily Ichimoku Kinko Hyo Chart

From a bullish outlook, Axie Infinity price needs to close above the Tenkan-Sen – at or above $64. AXS would still be below the Cloud, but a daily close above the Tenkan-Sen and Kijun-Sen would provide the weight and positioning needed to move above the Ichimoku Cloud. Upside potential is likely limited to the 2022 Volume Point Of Control at $73.

From a bearish perspective, Axie Infinity price needs to close below the Kijun-Sen and the prior swing low near $56. From there, the move would likely confirm a bear flag. AXS would likely retest the 2022 lows near the 38.2% Fibonacci retracement at $46.