- Axie Infinity sees the relief rally from Tuesday cut short.
- AXS price set to slip back below $19.59, risking a 20% drop.
- If this down-move continues, it could result in a squeeze towards $11.52.
Axie Infinity (AXS) price sees the relief rally from Tuesday cut short after hawkish comments from FED chair Powell on inflation and the economy. The comments poured cold water on a hot plate as investors started to prepare for the longer-term relief rally. Instead, markets globally have pulled back, and gains from Tuesday are being pared and now risk dropping towards new lows for the week, as AXS price could be set to lose 20% of its value.
AXS price sees rally cut short preemptively
Axie Infinity price move this morning goes to show yet again the importance of a central bank and the backlash it has on all assets in cryptocurrencies. Although cryptocurrencies are not regulated by the FED or any other central bank, the fact that equity markets are on the back foot this morning is no coincidence, with cryptocurrencies following suit and likewise also printing red numbers this morning. Expect to see the gains from today being pared back and interest fade.
AXS price will first test first $19.59, the low of Tuesday, with a risk that bears will seize the opportunity to run price action into the ground. Now that the FED has admitted that it might need to react to rising inflation and that that reaction could cause massive shocks in the markets, making investors flee into cash and stay out of sensitive assets. This lack of new interest could trigger AXS price to drop towards the monthly S1 and historic pivotal low at $11.52, losing 45%.
AXS/USD daily chart
Some positive news from China, where the government has lifted more and more lockdowns, and the economy is reopening, could boost sentiment as clearly upside potential is still there. Expect a pop above the high of Monday at $23.64 potentially ticking $26.11. Once above, only $30.93 is in the way before covering some ground towards $44.45, with that triple cap there still present and intact.
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