Axie Infinity price set to dip lower as AXS bulls disappear

Axie Infinity price has dropped below a crucial support level, converting it into a resistance barrier. From here on, any minor uptrend is likely to face rejection at the barrier, leading to a sharp correction.

Axie Infinity price at an inflection point

Axie Infinity price has set up a double bottom at $48.06 after dropping roughly 37% over the past four days. This downswing and the bottom reversal pattern have left quite a bit of sell-side liquidity resting below $48.06.

There is a good chance AXS could attempt a 15% ascent to tag the recently flipped demand zone, extending from $58.22 to $69.22. A retest of this breaker will likely result in a sharp rejection, providing investors with the opportunity to enter a short position.

The downswing will likely breach the $48.06 support level and collect the liquidity resting below it. In some cases, Axie Infinity price could slide as low as the weekly support level at $37.66, where market participants can book profits.  This move would constitute a 25% correction from the retest of $58.22.

AXS/USDT 6-hour chart

On the contrary, if Axie Infinity price progresses through the $58.22 to $69.22 breaker, producing a daily candlestick close above it, the bearish thesis would face invalidation. This development could see AXS form a base around the $70 barrier, in preparation for an uptrend.

A potential spike in buying pressure around this level could see Axie Infinity price retest the $88 level, where the 200-day and the 50-day Simple Moving Averages crossover.

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