Axie Infinity: Can buyers benefit from this support?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- AXS reversal hit a local demand and support zone of $4.40.
- AXS has been in the accumulation phase since August.
Since late September, Axie Infinity [AXS] buyers have benefited from the local support and demand zone of $4.40. Although the initial two retests on the support saw buyers enjoy +9% gains, a recent hit on the same level didn’t lead to a similar price performance.
Read Axie Infinity’s [AXS] Price Prediction 2023-24
Is another buying opportunity feasible at the support?
The local support at $4.40 also doubled as H4 bullish order block (OB) of $4.40 -$4.44 (cyan). The level has prevented a further price plunge since 25 September, allowing bulls to front a recovery.
At press time, the recent pullback has eased at the local support. If the previous trend repeats and Bitcoin [BTC] doesn’t post extra short-term losses, AXS could rebound to the demand and local support zone of $4.40 -$4.44 (cyan).
If so, the rebound could offer a modest gain of +2%, with the immediate take-profit target at $4.55 (a recent high).
A crack below the support zone will invalidate the bullish thesis. Such a move could encourage sellers to extend gains to $4.30 or $4.34.
Meanwhile, Spot demand has declined significantly since mid-September, as shown by the retreating of the OBV (On Balance Volume). Besides, the buying pressure weakened, as demonstrated by the negative RSI below the 50 mark at press time.
Axie Infinity recorded a steady accumulation
According to Santiment, AXS has seen a steady accumulation since August, as shown by the rising 90-day Mean Coin Age. That meant that more holders expected a rally in the future.
How much are 1,10,100 AXS’ worth today?
But short-term selling pressure increased, as illustrated by the spike in the Supply on Exchanges. In addition, the drop in Network Growth indicated that the play-to-earn platform lost traction in the past few days.
So, the bullish bias could be a risky opportunity, and tracking BTC’s price action is crucial for optimized set-up and risk mitigation.