Jonathan Morgan
Independent Analyst
- Axie Infinity price action faced the same collapse the broader crypto market has experienced.
- Volume continues to increase, indicating a reversal may be incoming.
- Renewed buying pressure and volume entered AXS after hitting new 2022 lows.
Axie Infinity price faced another major capitulation move on Wednesday. A scheduled US CPI release confirmed inflation remained 40-year high, with a slight tick YoY. Cryptocurrencies collapsed on the initial report, with AXS falling more than 33%.
Axie Infinity price rallies nearly 40% off the lows
Axie Infinity price action for today is the definition of a whipsaw. AXS opened the day at $24.20 and was hammered to $16.20. At the time of writing, AXS has regained the $23 value area and continues to climb.
Compared to its peers, the drop in Axie Infinity of entry for new players and the recent Ronin Network breach in March 2022 continue to weigh on current and future investors. In addition, the major gap in the 2021 Volume Profile below $35 also contributed to the size of the drop.
The amount of volume pouring into AXS at present sets Axie Infinity price for a test of resistance at $31. $31 contains the 50% Fibonacci retracement and the daily Kijun-Sen. Given the power of the buying, bulls could blast through that resistance.
AXS/USDT Daily Ichimoku Kinko Hyo Chart
The next level that AXS price would then test is the 2022 Volume Point of Control and 38.2% Fibonacci retracement at $50. Due to the thin Volume Profile, traders should expect a fast spike between $32 and $50.
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