Axie Infinity price not out of the woods yet as AXS slides toward $30

Axie Infinity price continues to face weakness as its downtrend remains intact. AXS could be headed for a 40% plunge following the slice below the lower boundary of the prevailing chart pattern.

Axie Infinity price paralyzed by bearish momentum

Axie Infinity price validated the descending parallel channel when the token broke below the lower boundary of the governing technical pattern at $58.08 on January 22. The prevailing chart pattern projects a 40% plunge toward the $30.30, coinciding with the 127.2% Fibonacci extension level.

The first line of defense for Axie Infinity price is at the September 21 low at $48.10. An additional foothold will emerge at the August 10 low at $43.29. Before AXS drops toward the pessimistic target, another line of support may appear at the August 1 low at $37.26.

However, if buying pressure increases, Axie Infinity price may aim to tag the lower boundary of the governing technical pattern at $55.76 first. 

An uptick in market sentiment may incentivize the bulls to reach the 78.6% Fibonacci retracement level at $61.12, then toward the middle boundary of the prevailing chart pattern at $67.83, coinciding with the 21-day Simple Moving Average (SMA).

Bigger aspirations will target the upper boundary of the descending parallel channel at $79.26, which intersects with the 50% retracement level.

AXS/USDT daily chart

Only if Axie Infinity price manages to escape above the topside trend line of the governing technical pattern would see AXS break free from the prevailing downtrend. 

However, bullish investors should note that Axie Infinity price would still face stiff resistance following a potential break above the upper boundary of the parallel channel. AXS will face significant challenges at the 38.2% Fibonacci retracement level at $86.74, sitting near the 50-day SMA and 200-day SMA.