Axie Infinity shows the possibility of a move above $6 but…

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• The trend and market structure remained bearish.
• Short-sellers can wait for a test of critical Fibonacci retracement levels.

Axie Infinity [AXS] posted a development update for June highlighting some of their recent wins. One of these was bringing Axie to Apple by making Origins available on iOS in select countries in LATAM and Asia. Despite the flurry of activity, the sentiment behind the AXS token remained negative.

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Read Axie Infinity’s [AXS] Price Prediction 2023-24

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This was due to the price trend in recent months. The altcoin market suffered in early June but AXS has trended downward since March. This higher timeframe trend was not yet broken.

The Fibonacci retracement levels show where the downtrend could resume

The market structure and trend of Axie Infinity were bearish on the 1-day chart. The RSI has been below neutral 50 since mid-February, with a brief foray to 60 in the second week of April. That attempt to shift the structure bullish was firmly quashed.

At the time of writing, the OBV was in a downtrend following its massive losses earlier in June. Previously it had trended higher, showing a phase of accumulation. Combined with the structure and momentum, it appeared likely that AXS would see another move downward.

The Fibonacci levels were plotted based on the most recent leg southward and showed that the $6.05-$6.4 region could be retested before another move down. This region had acted as a zone of support in May and could act as resistance before AXS resumed its downtrend.

The weighted sentiment was also negative but active addresses saw a huge increase

The development activity has spiked higher and higher since May 7 and was an encouraging sight to long-term bulls. The June update also highlighted that work to increase the player base proceeded with scant regard to the price trend in the market.

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Realistic or not, here’s AXS’s market cap in BTC terms

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The weighted sentiment was negative, which was unsurprising in a bear market. The large increase in the 30-day active addresses after 5 June was another positive sign for buyers. Yet, from a technical perspective, long-term investors can await an uptrend or a range formation before seeking buying opportunities.