The popular play-to-earn token AXI Infinity (AXS) took a heavy toll after a spectacular rally to around $30 during the last trading day. The asset rose to a three-week high but ultimately failed to sustain gains and declined more than 18.5 percent from early trading hours. Furthermore, it presently presents a greater possibility of a major downside coming very soon.
The decline in AXS price is said to be driven by a decline in BTC price from $32,200 to the current consolidation zone near $31,500. On the larger time frame, the asset looks bullish as it broke a falling wedge and took a slight higher.
The price recently broke out of a descending wedge which is a notable bullish pattern and hence again subjected to testing. A retest may pull the price towards the same support levels before resuming further with a significant upside. Short-term price action is also showing a similar upward trajectory with supporting indicators.
As seen in the above chart, the price has just flipped from the lows after a significant correction and is preparing for a ‘V-shape’ recovery. The RSI is showing a bullish divergence, while the MACD could flash a buy signal any time from now. Therefore, the upward trajectory may remain intact until the price retraces the lost levels. With a breakout, Axi Infinity (AXS) price may initially move towards an immediate target above $30.