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Axie Infinity price under stiff resistance as AXS tries to recover

  • Axie Infinity sees bulls breaking a few significant resistance levels to the upside intraday.
  • AXS gets rejected at $122.80 and undergoes a significant fade back to the opening price at $105.90.
  • Expect bullish effort to be helped further as cryptocurrency sentiment is on the front foot.

Axie Infinity (AXS) sees a bullish reversal today as bulls try to break the downtrend and even some resistances that bears saw heavy defending the past few days. However, bulls faced earlier this morning a significant rejection at $122.80, making it a possible bull trap as price action in AXS during the European morning completely collapsed and traded back to opening levels. It will be essential to see if the US session can retest and break $122.80 to the upside, with a price target at $148.90 by the end of this week.

Axie Infinity bulls must to break fundamental level to enable new all-time highs

Axie Infinity saw buying volume explode this morning as bulls hatched a plan to go for the bullish reversal and try to squeeze bears out of their positions to break the downtrend. The plan went smooth until bulls hit a curb at $122.80, a level well respected short-term with already some apparent price reaction from both the upside and the downside. As bulls came a long way intraday to reach this level, the risk of a bull trap is imminent as bulls got rejected to the tick on this one. 

AXS price has broken the historical $111.08 and the monthly S1 support level at $113.76. These two breaks should help attract additional investors into the buying action at Axie Infinity. That fresh help should see price action pop back towards that $122.80 level and break it to the upside. If bulls can refrain from any profit-taking, expect to see $148.90 possibly by the end of the week, which opens the door for new all-time highs by next week. 

AXS/USD daily chart

AXS/USD daily chart

Should bulls not be able to regain the lost ground from this morning, and AXS price action remains subdued below $111.08, expect a further fade from bears and see bulls pulling the plug out of their attempt. This will trigger a quick nose dive towards $90, with the monthly S2 support level that past weekend already halted the falling knife price action in AXS. Expect it not to hold this time, with bears targeting $85.22 as the next level of support.

Author

Filip Lagaart

Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.

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