Axie Infinity (AXS) has been declining since April 2 and broke below the previous breakout level on April 6.
AXS has been declining below a descending resistance line since reaching an all-time high of $166 on November 6. So far, the downside movement has led to a low of $41.9 on February 24.
The price has since been trending upwards and broke the above descending resistance line on March 16th. The breakout led to the April 2 high at $75.55.
However, the upward momentum could not be sustained and AXS has since been declining. Now it is again approaching the $47 support area. This same area was the catalyst for the upward movement that led to the breakout.
Therefore, it is important that the price remains above this level to maintain the bullish structure.
Future AXS Movement
cryptocurrency trader @CryptoNTez Tweeted a chart from AXS stating that the coin is currently consolidating and attempting to flip the $65 area as support.
However, the price failed to sustain the rally and instead declined.
A closer look at the movement shows that AXS failed to hold above the $55 horizontal zone. The area was intermittently acting as both resistance and support since January 22. Therefore, a break below it is a bearish signal.
The area is now expected to provide resistance.
However, there is a hidden bullish divergence in the RSI and the MACD remains positive. Nevertheless, these signals are not enough to predict a potential bullish trend continuation, especially as AXS failed to hold above the $55 area.
wave count analysis
While the longer-term wave count is still unclear, it is possible that AXS completed an irregular flat correction in the period between March 25 and April 7.
Waves A:C had a ratio of exactly 1:1.61, which is common in such corrective formations.
If true, there will be a big jump in the short term.
However, the long-term trends are unclear.
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