Axie Infinity [AXS] buyers could aim to propel recovery toward this range
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
As Axie Infinity[AXS] approached its $11-$12 year-long support range, the buyers stepped in to inflict an up-channel (yellow) revival.
Consequently, AXS hiked above the basis line (green) of the Bollinger Bands (BB) to test the $15 resistance. The break below the channel has exposed AXS to a likely downside in the coming sessions. At press time, AXS was trading at $13.945, down by 6.19% in the last 24 hours.
AXS 4-hour Chart
The alt’s reversal from the $27-level since early April pulled it down toward its year-long support. Meanwhile, AXS marked a three-week trendline resistance turned support (yellow, dashed).
The altcoin lost over 58% of its value (from 31 May) and plunged toward its 11-month low on 19 June. As the buyers finally swooped in, AXS registered gains and found a spot above the basis line of BB. With the upper band of the BB and the $15-mark creating a stiff barrier, the alt saw an expected drawdown.
The fall below the up-channel confirmed a breakdown. The sellers could now aim to test the POC in the $13-zone before any bullish revival prospects.
A sustained close below the basis line can pull AXS toward the $13.5-support. A close below this level can extend the downside toward the trendline support. On the flip side, an immediate revival from the POC can give the buyers a much-needed boost to retest the $14-$15 range before any reversals.
The RSI’s equilibrium has flipped into resistance after the sellers exhibited their edge over the last day. Although the index was near the neutral zone, the buyers needed to ensure a close above the midline to reclaim their advantage.
Having said this, investors/traders must keep an eye on the MACD lines. A convincing bearish crossover can delay the short-term recovery prospects. But looking at the bullish divergence on the OBV’s troughs, the buyers would likely aim to rebound from the immediate support.
Given the bearish break below the up-channel alongside a close below the basis line of BB, AXS could test the $13.5 or the trendline support. Should the sellers dwindle because of the bullish divergence on the OBV, the buyers could aim to propel a recovery toward the $14-$15 range.
However, it becomes vital to note that the altcoin shares an 88% 30-day correlation with Bitcoin. Thus, keeping an eye on Bitcoin’s movement would be essential for making a profitable move.