• Axie Infinity price shattered the $58.22 to $69.22 demand zone, flipping it to a beaker.
  • Investors can expect a 25% crash upon the retest of the demand zone’s lower limit at $58.22.
  • A decisive close above the $69.22 barrier will invalidate the bearish thesis for AXS.

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

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.

 

RELATED CONTENT

 

Crypto.com CEO Kris Marszalek predicts higher institutional investment in crypto

Kris Marszalek, the CEO of Crypto.com, believes that in 2021, tens of billions of dollars will go into cryptocurrencies. Institutional investors have poured capital in DeFi, NFTs and metaverse projects over the past year. Marszalek believes that the entire cryptocurrency industry is on a breakout trajectory. The Crypto.com CEO considers that institutional investors are waiting for an opportunity to accumulate cryptocurrencies in 2022. Crypto.com exchange recently suffered a security incident where 400 users were affected. The exchange reimbursed impacted users and published a detailed investigation report. Analysts have noted that there was no negative impact on the exchange's native token Crypto.com price. @krypto_scalper, a pseudonymous cryptocurrency analyst and trader, evaluated the Crypto.com price trend. The analyst predicted that the exchange's native token could make a comeback above $0.5. Crypto.com has posted 16.9% losses over the past week; however, analysts have predicted a recovery in the altcoin's price. @CanteringClark, a crypto analyst, believes that despite the security incident, there was no impact on the native token's price, which is a sign of the market's immaturity. No response in Crypto.com's price trend could imply that the cryptocurrency market is inefficient. Read more

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

The LUNA hard fork is set to occur on May 28, followed by the subsequent airdrop of LUNA 2.0 tokens to eligible holders. Ahead of the real LUNA 2.0 airdrop, some scammers have tried to lure LUNA and UST holders to send their assets in lieu of receiving the new tokens. 

More Terra News

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

More Bitcoin News

This Web3 move by Crypto.com could be a good bet for patient investors

This Web3 move by Crypto.com could be a good bet for patient investors

Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.

More Crypto.com News

Why Elon Musk’s tweet failed to move Dogecoin price

Why Elon Musk’s tweet failed to move Dogecoin price

Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.

More Dogecoin News

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

Read full analysis

BTC

ETH

XRP