Jonathan Morgan
Independent Analyst
- Axie Infinity price experiences likely dead-cat bounce.
- Bulls target the next primary resistance zone at the $71 value area.
- Bears likely to resume selling pressure if bulls are unable to continue a drive above $71
Axie Infinity price has followed the rest of the aggregated crypto market in a strong bounce after experiencing double-digit percentage losses. However, any upside potential here is likely limited due to the number of Ichimoku resistance levels ahead.
Axie Infinity price nears resistance after a dead-cat bounce
Axie Infinity price has increased as much as +26% during the Wednesday trading session as the broader cryptocurrency market sees profit-taking from short sellers. Unfortunately, the current close is in one of the worst trading conditions within the Ichimoku system: inside the Cloud. The Cloud represents volatility and indecision – behaviors Axie Infinity will experience before a clear breakout occurs.
Three oscillator conditions contribute to the strong bounce occurring. The Relative Strength Index has crossed above 40, the Composite Index reached a historical support level and the Optex Bands tagged an extreme. However, while the oscillators help confirm a short-term bounce, they do not yet confirm a continuation move higher.
AXS/USDT Daily Ichimoku Chart
There are several resistance levels ahead for Axie Infinity price. First, the Kijun-Sen at $71.68. Second, the top of the Cloud (Senkou Span A) at $68.00. And third, a high volume node in the volume profile at $68.44.
Bulls will want to be careful as Axie Infinity price gets close to the $70 value area. Bears are likely to watch very closely for any apprehension and pounce on any perceived weakness. A continuation move south is very likely if the bulls fail to push beyond $71. A clear sign of another bullish expansion phase would be a close at $79.00.
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