Axie Infinity is on a roll; here is where traders can look to join the AXS bull party
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Axie Infinity sees a strong bullish market structure develop
- The sharp bullishness recently despite weakness across the market suggested that the asset might have far more room to expand to the north
Axie Infinity gained nearly 35% in the past two days alone. Buyers have defended the $6 level of support with vigor in recent weeks. Bitcoin also rallied in the same period from $15.6k to $17k, but AXS has gained nearly 50% compared to BTC’s 9%.
Read Axie Infinity’s Price Prediction 2023-2024
Axie Infinity launched an initiative that would see it progress gradually toward decentralization. Yet, a recent article highlighted how longer-term holders were holding the token at a loss. Technical analysis showed that a strong move upward was underway, and a buying opportunity could present itself on a pullback.
The strong recent performance of Axie Infinity bolsters bullish confidence
On 5 December, Axie Infinity registered a strong spurt upward in prices. In doing so it broke the market structure from bearish to bullish on the daily timeframe. Important horizontal levels at $8.8 and $7.64 were broken, and $8.8 has been retested as support on lower timeframes.
On the six-hour chart, a fair value gap was spotted in the $7.35-$8.1 area. Highlighted in cyan, this FVG can be retested shortly. Although AXS has rocketed higher on large trading volumes, a pullback was still possible. The Relative Strength Index (RSI) showed strong bullish momentum while the On-Balance Volume (OBV)’s swift gains were indicative of hefty demand in the markets.
Traders looking for a good risk-to-reward buying opportunity can wait for a retest of $8.8 on lower timeframes. A move below this level can see Axie Infinity dip toward $8, which can also interest buyers. Invalidation of this idea would be a drop below the recent higher low at $6.6.
The mean coin age was on the rise, and network growth was encouraging as well
The enormous spike in demand for AXS seen on the OBV in recent days seemed to have some correlation with the network growth. The large moves upward on this metric showed new addresses created on the network, and the surge suggested an inflow of users.
At the same time, the mean coin age (90-day) was also on the rise. This showed AXS didn’t move around a lot but stayed in their wallets, which in turn suggested accumulation across the network.