AXS now well-positioned to eye this price level if one scenario plays out
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
After hitting its ATH on 6 November, Axie Infinity (AXS) commenced its downturn in a descending channel while the bears kept testing the crucial $46-support.
Assuming the bulls can uphold this support, as they have for over six months, a patterned breakout towards the $54-mark before entering into a tight phase seems likely. But, any close below the 78.6% Fibonacci support would contribute to a $43-retest before picking itself up towards the mean of Bollinger Bands (BB).
At press time, AXS was trading at $48.4, down by 2.2% in the last 24 hours.
AXS Daily Chart
Source: TradingView, AXS/USD
The retracement phase marked a couple of down channels (white) on its daily chart as the alt lost nearly 74.4% of its value (Since 6 November) and touched its six-month low on 24 February. As a result, AXS struggled to float above the mean of its BB.
Due to this trajectory, AXS lost the vital 61.8% Fibonacci level and the crucial Point of Control (red) near the $50-mark. The fall halted at the 78.6% Fibonacci level. The bears are keen on breaching this level while the bulls refrain from giving further control. Thus, creating a strong clash between the buyers and sellers in the $46-$50 range.
Should the buyers fail to defend this range, a potential retest of the lower band of BB would be likely before a bullish resurgence. Besides, considering its historical behaviour, the bulls could propel a revival and endeavour to close above the Point of Control (POC, red). In either case, considering the uptrend of its RSI, there is potential for a likely test of the $54-zone.
Source: TradingView, AXS/USD
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