Axie Infinity’s AXS has concluded July with a retest of its monthly resistance level near $18.5. This is the same price level that previously acted as the support zone in May, prior to June’s extended crash. However, AXS’s latest price action highlights some interesting observations that may provide a peak into what to expect in August.
AXS has been moving in tandem with the rest of the crypto-market, with the latter managing to recover above the $1 trillion market cap-level. A share of its liquidity inflows went into AXS, pushing its price up by roughly 37% from its mid-week lows.
The resulting uptick retested the cryptocurrency’s monthly resistance level. However, the strong bullish momentum briefly pushed above the same resistance before recording some selling pressure.
A key observation about the latest uptick is that the bulls have been growing stronger. The upside managed to push the price past the $18.50-level and as high as $20. It was down to a press time price of $18.45, suggesting that the resistance level seemed to be still active.
However, the push above the resistance level confirmed that AXS bulls are growing stronger.
Rolling the dice
Stronger bullish momentum and a weaker resistance line mean the price might be due for more upside. This observation can be supported by the fact that AXS is still not overbought, despite the solid mid-week bull run. Axie Infinity’s on-chain metrics may offer clearer insights as to where the cryptocurrency may be heading.
AXS’s 90-day dormant circulation registered a small spike on 29 July, presumably due to profit-taking after the slight rally last week. However, this spike was small compared to its mid-month spike, following which, AXS’s realized cap dropped significantly.
This outcome suggests that deep-pocketed investors have been buying AXS near its recent bottom.
The realized cap was still at its lowest monthly levels, at press time, which meant that not a lot of selling has taken place this week.
AXS’s whale transaction count metric for transactions worth over $100,000 peaked at 13 transactions. The number of transactions worth $1 million during the same day peaked at three transactions.
AXS’s transaction counts over the last two days are likely investors taking profits considering that they are active after a significant uptick.
However, the lack of more sell pressure at press time suggests that any subsequent short-term pressure might be limited.