Axie Infinity (AXS) initiated another drop this week after remaining calm above a five-month low over the past weeks. So far, it has lost approximately 20% since the start of the week as bearish actions build up.
The past months have seen AXS through a series of downfalls as the price collapses several major supports. The bleeding stopped at $6.5 (a five-month low) and traded above it for a month.
After that, Axie tested an important resistance line, then resumed selling pressure and made another major break below its five-month low today. As a result of that, the price is bleeding toward the important $5.85 level with an increased selling volume.
That important level marks the 2022 bottom, where the price bounced off last December. We can expect a buying reaction around this level once the price tests it. A bullish reverse pattern is more likely to occur there.
If the buyers fail to defend the mentioned that level, Axie’s price may collapse and look for a lower level to suppress pressure.
Since the price started to decline in March, it has lost more than 50% to $6.2 with no sign of recovery. More price loss would be recorded as long as the bears continue to drive the price lower. AXS looks extremely bearish on a daily as the price enters into an oversold area.
AXS Key Levels To Watch
The closest support level now is $6, followed by the mentioned $5.85 bottom. Lower levels to consider for drops are $5 and $6.
An increase from the current trading level could bring a retest to this week’s breakdown level of $6.5. A push above that level could bring more recovery to $7.5 – a vital resistance level for a change in trend. Another resistance lies at $8.5.
Key Resistance Levels: $6.5, $7.5, $8.5
Key Support Levels: $6, $5, $4
- Spot Price: $6.2
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: inueng/123RF // Image Effects by Colorcinch
