- 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.
Like this article? Help us with some feedback by answering this survey:
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.