- Axie Infinity price needs to slide lower and retest the 70.5% retracement level at $53.62.
- This move will set the stage for an expansion to $72.01, coinciding with the weekly resistance barrier.
- A four-hour candlestick close below $45.93 will invalidate the bullish thesis.
Axie Infinity price has seen multiple downswings since February 7. The most recent one is currently searching for a stable support level so AXS can kick-start a new uptrend.
Axie Infinity price prepares for liftoff
Axie Infinity price set a range, extending from $45.93 to $72.01 as it rallied 56% between February 3 and 7. This exponential upswing took a break at $55.11 and set a swing low there. The retracement from the range high set up another swing low around $55.11, creating a double bottom formation.
This technical formation facilitated a quick 20% ascent but left the residual liquidity below $55.11. Therefore, the current pullback will likely sweep below $55.11 and retest the 70.5% retracement level at $53.62 before heading on another ascent.
Doing so will allow Axie Infinity price to make a run for a higher high above the recent swing high at $66.20. This move will likely extend to the range high at $72.01, coinciding with the weekly resistance barrier.
In total, the uptrend would constitute a 35% gain for Axie Infinity price.
AXS/USDT 4-hour chart
Regardless of the liquidity pool, if Axie Infinity price slides below $53.62, it will indicate that the sellers are driving AXS into a deep discount phase.
If this bearish momentum pushes Axie Infinity price to produce a four-hour candlestick close below the range low at $45.93, it will invalidate the bullish thesis. In this case, AXS will likely slide lower and collect the liquidity resting below $44.27 to give the uptrend another go.
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.