Axie Infinity struggles to keep bullish momentum, contemplating correction to $100

Axie Infinity price (AXS) is on a downward trajectory after hitting new all-time highs on October 4. With daily candles showing lower highs and the baseline as support at $111.08, a squeeze pushes bulls out of their positions. A break would spell more downside to come, with $100 as the first level of support.

Axie Infinity price faces bearish squeeze toward $100

Axie Infinity price action started the month of October on a solid bullish spike higher, but bulls saw their gains quickly reversed in the days after that, with lower highs and price action in AXS to the downside getting squeezed against $111.08. Bulls are losing control over their run, and Axie Infinity price action was rejected around the green ascending trend line on the break lower. With a bearish triangle being formed, expect a gap in the coming days to the downside with the first level of support around $100.

Expect bulls to attempt to restore the bull run, but the green ascending trend line now is turned to resistance, and the red descending trend line looks quite solid with only one real test on October 8. Thus the red descending trend line will keep attracting bears to limit further gains and push price action in AXS to the downside.

AXS/USD daily chart

Expect the first level of support at $100, with just below the monthly S1 support level at $97.32 in AXS price action. As that level has not been appropriately tested, expect another leg lower toward $85.22, proving its importance to Axie Infinity price. 

Should the bulls receive more positive tailwinds on their side, expect a break of the red descending trend line and a return to $160 with a test of the high, thus forming a double top in Axie Infinity price action.