October 2, 2022

Axie Infinity buyers finally secured dependable footing at $28.9 amid efforts to stop sell-off conditions. Though the latest downward move dragged the token to multi-month lows, AXS printed a downward channel on its daily chart.

After encountering the challenging hurdle around the downward channel’s upper boundary, AXS bears would target to test how sturdy the baseline at $28 is. While writing this content, the altcoin traded at $32.397, dropping 10.43% within the previous 24 hours.

Axie Infinity Daily Chart

AXS created consistent lower troughs and highs since March 25. The actions formed a descending channel on the daily timeframe. However, the bearish phase took Axie Infinity towards 9-month lows on April 30.

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As the $28 area matched the downward channel’s lower trend line, buyers triggered brief upswings yesterday. Nevertheless, the upper limits of the current setup constricted the recovery. Sellers dominated the space, with the 20 Exponential Moving Average extending its southward journey.

For now, AXS succumbs to the broad market bearishness. A potential $28 retest might see the alternative token in a constricted phase around its closest support. A closing past this area might unveil long-term revival hopes. That would clear the path for Axie Infinity to explore the $37 obstacle near the 20 Exponential Moving Average.

Reasoning

The Relative Strength Index resonated with the latest ease in selling momentum. While the indicator staggered beyond the oversold level, it still required a close beyond the resistance at 36 to establish a breakout rally foundation on the altcoin’s chart.

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The Chaikin Money Flow’s bearish divergence with the price confirmed the probability of a near-term fall on AXS charts. Since it swayed beneath the zero-level consistently within the past five weeks, buyers should up their actions in intensifying buying volumes.

Final Thought

A potential $28 retest might dip Axie Infinity into a constricted phase considering the prevailing market conditions. For that reason, buyers would need a revival to move past the current setup to trigger long-term recoveries towards $37.

Meanwhile, AXS has an 88% monthly correlation with BTC. Enthusiasts should watch Bitcoin’s trends to ensure profitable decisions.

Editorial credit: photo_gonzo / Shutterstock.com


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