As predicted in the previous article, when the 20 EMA (red) jumped above the 50 EMA (cyan), Axie Infinity (AXS) retested the golden Fibonacci level. Then, the price fell towards its immediate trendline support (white).
Now, the bulls would likely counter the recent sell-off by aiming to reclaim the $59-$60 range before making a trend-commital move. At press time, AXS was trading at $55.214, down by 4.46% in the last 24 hours.
AXS Daily Chart
After testing the 61.8% Fibonacci level, AXS consolidated in the $63-$68 range before a streak of bearish engulfing candlesticks. It was down by nearly 20% in just the last three days.
Since losing the critical 61.8% Fibonacci support, the bears have made a point to ensure the sturdiness of their resistance. On its way down, AXS hovered around its Point of Control (POC) before plunging towards its three-week trendline support.
Unless the buyers back the current revival with solid volumes, the bulls would struggle to sway above the 20/50 EMA. In which case, the alt would fall back to test the trendline support and continue its gradual streak of higher troughs. A close above these EMAs would provide enough power to buyers for consolidating near its POC.
After losing the midline support, the RSI finally found a floor at its trendline support. This recovery ignited a hidden bullish divergence on its daily charts. A continued rally could face resistance near the equilibrium.
The CMF visibly depicted a one-sided bearish momentum. The recent plunge pulled it towards its 11-week low while affirming a hidden bullish divergence with price. So, an increase in the money volumes from this level seemed likely in the days to come.
Considering the divergences of price with its RSI and CMF, AXS could test the $60-mark before a possible pullback. If the bulls do manage to cross the near-term EMAs, they could push for a POC retest in the days to come.
To top it up, the altcoin shares an 83% 30-day correlation with Bitcoin. Thus, keeping an eye on Bitcoin’s movement would be essential for making a profitable move.