Axie Infinity (AXS) highlights bullish intentions from a technical standpoint. However, on-chain metrics issue warnings. The alt has one substantial obstacle that might break or make it and determine AXS’s directional bias. Meanwhile, enthusiasts should be cautious with their investing undertakings in the upcoming days.
AXS Next Move
Axie Infinity has had a long journey since breaching its head-shoulders set up on April 24. The technical pattern comprises three unique highs with swing lows rebounding from a dependable support zone, the neckline.
The central peak, the head, is the tallest, whereas comparable highs on each side represent the shoulders. Crypto sees downswings whenever its breaks down of the neckline.
This formation symbolizes a popular reversal setup that signals asset distribution while showing an end to the upside trend. The price target comes from measuring the head’s peaks and neckline and adding to the breakout area.
As Axie Infinity cracked the neckline on April 24, the target shows a 72% drop to $12.38. the alternative token lost 63% in about 16 days to form a swing low at $16.22. Nevertheless, the alternative token has recovered 38% to its current level of $22.29.
The upward move appears possible, especially with Bitcoin’s state. Thus, interested market participants can align themselves for impressive profits. AXS will meet the initial hurdle at $26.23. This level represents an inflection zone and might break or make the upcoming leg.
A recovery that overturns the area into support will confirm buyers’ resurgence. Nevertheless, that remains unlikely unless Bitcoin launches a full-blown upswing.
Rejections might witness Axie Infinity on extended declines towards $12.38, the forecasted target. Massive bullishness in BTC will see AXS overcoming the challenge at $26.23 and surge towards the resistance at $45.22.
Besides the Bullish Bias
While AXS’s technicals flash bullishness, the on-chain volume has a different story. A sudden surge in the metric shows investors interacting with the Axie Infinity network. That might mean an investment attitude by market players.
As the technicals suggest, an asset’s price uptrend often accompanies an on-chain volume increase. Thus, investors might use this (theoretically) as a sign to join the bias early for-profit squeezing. Meanwhile, this metric maintained downtrends for AXS, reflecting investors’ disinterest in current prices.
The on-chain volume slumped to 342 million from 1.05 billion within the past five days. The 67% drop shows faded optimism by investors. That way, investors need to be careful with Axie Infinity.
Editorial credit: TongRoRo / shutterstock.com
NFTMetaverseFinance is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site (namely Branded Voices content) is paid content that is not written by our authors and the views expressed do not reflect the views of this website. Any disputes you may have with brands or companies mentioned in our content will need to be taken care of directly with the specific brands and companies. The responsibility of our readers who may click links in our content and ultimately sign up for that product or service is their own. Cryptocurrencies, NFTs and Crypto Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.