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AXS price captivates, Axie Infinity could go all the way to $100

  • AXS price is on pace for a 62% gain today, making it the best day since data began in November 2020.
  • Axie Infinity overcame the resistance of the 261.8% Fibonacci extension at $26.41 and is now above the 361.8% extension at $35.47.
  • The measured move of the 77-day cup base has not been fulfilled, projecting higher prices for the digital token.

AXS price is up 100% this week and has logged a bullish engulfing week on the bar charts, confirming the liquidation of weak holders and continuing the rally that has accumulated a 550% gain this month. Based on the Fibonacci layers and the measured move of the cup base formed from April to July, Axie Infinity is primed for higher prices moving forward, despite the headline returns already on every timeframe.

AXS price redefines commitment and emotion

AXS price has exploded onto the cryptocurrency scene with eye-popping gains on every timeframe, pushing the Axie Infinity daily and weekly Relative Strength Indexes (RSI) into extreme overbought territory. 

It is a new example of FOMO and the remarkable development for a protocol that draws inspiration from CryptoKitties. As outlined in an FXStreet article on July 13, Axie Infinity is “a blockchain-based trading and breeding game that is built on the Ethereum blockchain.” Instrumental to its popularity is the free-to-play model that has catapulted it past PancakeSwap and other leading dApps in terms of cumulative revenue.

The compelling story is reflected in AXS price, particularly since the June 22 low of $2.78. The breakout from the 77-day cup base on July 6 was confirmation that better outcomes were in the future, and that has been the case, as Axie Infinity has climbed 245% from the breakout of the base.

The measured move of the cup base is nearly 337%, finalizing an AXS price target of $51.34 or a 36% gain from the current price. Fulfillment of the measured move is only obstructed by the 461.8% extension at $44.52. A conclusion of the Axie Infinity rally at the Fibonacci level would equate to an 18% gain from the current price.

However, momentum leads to more momentum, opening the potential for AXS price to advance to the topside trend line running from the November 2020 high through the April high. The current position of the Axie Infinity trend line is at $101, representing a 168% return from the current price.

AXS/USD daily chart

AXS/USD daily chart

It is important to note that the daily RSI is now flashing a bearish momentum divergence, suggesting slowing momentum for AXS price. Therefore, key Axie Infinity support levels are the July 15 high of $29.86, the 38.2% retracement level of the advance from the May 19 low at $26.12 and finally, the 50% retracement level at $21.65. 

Axie Infinity continues to decouple from the cryptocurrency complex with dazzling AXS price gains on most timeframes. The potential for additional gains is high considering the advance’s momentum and the resulting projections from the price structure. Whether Axie Infinity can reach the topside trend line is tough, but the commitment and emotion displayed over the last month suggest it is entirely possible.

Author

Sheldon McIntyre, CMT

Sheldon McIntyre, CMT

Independent Analyst

Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.

More from Sheldon McIntyre, CMT
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