Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
The buyers were finally able to ease the selling pressure by finding reliable grounds in the $18-$20 range. As the correction phase slackened on the chart, Axie Infinity (AXS) entered a tight phase between its symmetrical triangle.
Should the breakout candlestick find a fortifying close above the Point of Control (POC, red), AXS could see itself testing the sturdiness of the $24-level. At press time, the alt traded at $21.471, up by 4.64% in the last 24 hours.
AXS Daily Chart
Since late March, the sellers have practically been the driving force in the AXS market. The bears doubled down their pressure while provoking a descending channel devaluation on the daily timeframe. The string of red candles transposed into a head and shoulder set up early this month.
As a result, an expected breakdown pulled the alt down to its nine-month low on 30 April. Meanwhile, AXS witnessed a symmetrical triangle on its chart while plunging toward its POC. The sellers refrained from giving up their edge while the EMA ribbons still refrained from looking south.
If the buying efforts of toppling the POC come to fruition, AXS would expose itself to a short-term uptrend. Despite the overextended gap between the EMA ribbons, they still would offer strong resistance in buying rallies. Should the buyers dwindle, any close below the $20-mark could cause a retest of the $18-baseline before a bullish comeback.
The RSI’s reading depicted a gradual increase in buying pressure. While it hovered just above the oversold mark, it still needed to find a close above the 36-resistance to enable a breakout rally on the alt’s chart.
Further, any reversal from the CMF’s immediate trendline resistance would confirm a bearish divergence with price.
In view of the current market dynamics, it would be quite tough for the buyers to pull off a trend-altering rally. Any close above the POC could lead to short-term gains from its $24-$26 target. But the threat along the CMF could curb the near-term revival chances.
Finally, the altcoin shares an 91% 30-day correlation with Bitcoin. Thus, keeping an eye on Bitcoin’s movement would be essential for making a profitable move.