Today, Axie Infinity saw a notable increase due to the positive news surrounding the asset. The impact of this fundamental brought an insane daily 50% gain in the market, making the price surge to a three-week high.
Axie found support at $6 after the market crashed in November. The bulls showed commitment and sustained the price to a breakpoint. The price later opened around $6.9 today and broke out of structure at the $7 level on the 4-hour chart.
Apart from the fundamentals, the latest increase in Bitcoin’s price (to $17400) also contributed to the gains as it allowed Axie’s price to surge to a daily high of $10.38. The price dropped to $8.7 after washing away half of the daily gains. This loss comes quickly as the BTC price rolls back to $17k.
While it remains bullish on the lower time frame, the price actions look more like a pullback on the higher time frame. We can expect a massive sell-off if the daily rejection causes a severe price drop.
The bottom seems to be around the corner. The price is down by 93% over the past year, providing enough discount for considerable returns in the future. The last month’s low was a retest of the 2021 breakout level that led to a bull run. If Axie continues to trade above the current support level, history could repeat itself.
Matic Price Analysis (AXSUSDT): 4-Hour Chart
If the gains continue to wipe, the closest support to watch is $8. There’s also support at the $7.5 and $7 levels. The last defense line for the bulls is $6. If they fail to defend it, the price will drop to a new yearly low.
Following the ongoing positive sentiment, the price could increase to $12 in no time. But before then, it would need to reclaim the $9 and $10.3 resistance levels.
Key Resistance Levels: $9.5, $10.38, $12
Key Support Levels: $8, $7.5, $7
- Spot Price: $87
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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Image Source: photogonzo/123RF // Image Effects by Colorcinch
