Axie Infinity price has more room to crash before uptrend signs emerge

Axie Infinity price has witnessed a steep correction after an exponential rally. Following a massive downtrend, AXS is nearly close to bouncing off a stable support level. However, this barrier is below the current position, suggesting that the altcoin might head lower.

Axie Infinity price scrambles to find foothold

Axie Infinity price rallied roughly 917% between June 22 and July 15 to hit a new all-time high of $29.09. As impressive as this uptrend was, the 48% downswing that followed it was extremely steep.

AXS is currently trading at $15.38 and could potentially reverse its down move. However, investors should not neglect the possibility of a retest of the support level at $13.57. In some cases, a breakdown of this barrier could push AXS down to the high probability reversal zone extending from $12.84 to $8.38.

Assuming Axie Infinity pulls a 180 at $12.84, the first point of resistance will be the range’s midpoint at $15.98.

A decisive daily candlestick close above it will prove the buyers’ intention and propel the altcoin up by 23% to tag the swing high at $19.55.

AXS/USDT 1-day chart

On the flip side, if Axie Infinity price slices through the 70.5% Fibonacci retracement level at $10.61, it will indicate that the sellers are in control. A breakdown of the subsequent support floor at $8.38 will invalidate the bullish thesis though.

In such a case, AXS could slowly head toward the $6.60 demand barrier.