Axie Infinity (AXS) has turned upside down at an important horizontal support level and could potentially start a move towards $91.
AXS has been declining since November 6, when it hit an all-time high of $166. So far it has come down by 67%. This led to the January 24 low of $4.42.
The low $51 validates the horizontal area as support. Previously, the area acted as resistance in July (red icon) before turning to support in September (green icon).
If the upside continues, the nearest resistance area will lie at $91. This is the 0.382 Fibonacci Retracement resistance level.
cryptocurrency trader @murfski_ Noted the importance of this area, suggesting that once reached there could be a bounce.
oversold reading
Technical indicators for AXS on the daily time frame are yet to confirm a bullish reversal possibility. However, they are showing that the rally is highly oversold. This is especially visible in the RSI, which is a momentum indicator.
On January 22, the RSI reached a new all-time low of 24. It also formed a double bottom relative to the price on 8 January. Values below 30 are considered oversold.
Besides, there is a bullish divergence increasing in the histogram of the MACD. While this is not a strong bullish signal as divergence in the MACD itself, it still supports the possibility of a significant upside.
short term AXS movement
The two-hour chart shows that AXS has completed a five wave downward movement that began on January 17th. So, a lot of upside is expected.
The nearest resistance level is between $59.6 and $64.2. They are formed by the 0.382 – 0.5 Fibonacci Retracement resistance area. The latter is also a horizontal resistance zone, which further increases its importance.
For the latest Bitcoin (BTC) analysis from BeInCrypto, click here!