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- AXS appeared to be due for a pullback due to the RSI’s overbought character. As of press time, the RSI was already dropping from the overbought zone, indicating that purchasing had slowed in recent sessions
- To say Axie Infinity has had a good run would be an understatement
- During this period, support levels of $110 and $107 would be critical. Buyers should concentrate on the 38.2 percent and 50 percent Extension levels as they move forward
AXS appeared to be due for a pullback due to the RSI’s overbought character. As of press time, the RSI was already dropping from the overbought zone, indicating that purchasing had slowed in recent sessions. This was timed to coincide with a bearish crossover on the MACD, which signaled a sell entry. The general trend, though, was not in danger of reversing. The +DI of the Directional Movement Index was comfortably above the +DI, and the ADX was north of 66, indicating a rising market.
To say Axie Infinity has had a good run would be an understatement. Its price jumped from $48 to an all-time high of $120 in just 12 days, a gain of almost 150 percent. AXS was the sixth most-traded crypto during the previous 24 hours, with spot transactions totaling $5.6 billion. Meanwhile, the play-to-earn behemoth has been bolstering its community with massive airdrops and the launch of a decentralized exchange. The site has also made its staking capabilities more appealing by offering a 240 percent annual percentage rate.
AXS was able to establish an uptrend after breaking higher highs from $48. However, the rally began around the $72-support level. The Fibonacci Extension, which was drawn along AXS’s retracement to $104, showed possible profit-taking opportunities in the future. The 23.6 percent Fibonacci Extension provided some near-term tailwinds if investors locked their profits as a tremendous amount of buying pressure eventually eased.
Before the next upcycle, a retest of $110 and $107 support would be possible. Although improbable, closing below $95 would bring the alt surge to a halt. AXS needs to stabilize after such an erratic spike in such a short period of time. Not only would this be beneficial in the long run, but it will also allow for a more orderly rally. During this period, support levels of $110 and $107 would be critical. Buyers should concentrate on the 38.2% and 50% Extension levels as they move forward.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
