Axie Infinity (AXS) has bounced off a key horizontal support level, indicating that an upward rise towards $91 is possible. Since November 6, when it hit an all-time high of $166, AXS has been declining. It has dropped by 67 percent thus far. On January 24, the stock continues its downtrend and hit a low of $4.42.
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The low validated the $51 horizontal area as a support level. Previously, the area acted as a source of resistance in July (red icon), before shifting to a source of support in September (green icon). If the rally continues, the nearest region of resistance will be $91. This is the resistance level of the 0.382 Fib retracement.
Cryptocurrency trader @Murfski_ highlighted the significance of this region, predicting a bounce once it is reached.
Beautiful setup pic.twitter.com/zU6d6HEY1K
— Murfski (@Murfski_) January 7, 2022
Readings
- In the daily time period, technical indicators for AXS do not yet confirm the potential of a bullish turnaround. They do, however, show that the rise is severely oversold. This is particularly evident in the RSI, a momentum indicator.
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- The RSI hit a new all-time low of 24 on January 22. In relation to the value on January 8, it also established a double bottom. Oversold values are those that fall below 30. Additionally, the MACD’s histogram is showing a developing bullish divergence. While this isn’t as strong a bullish indication as MACD divergence, it does point to the prospect of a large bounce.
AXS movement
- AXS has completed a five-wave downward movement that began on January 17 on the two-hour chart. As a result, a significant rebound is likely.
- Between $59.6 and $64.2 are the closest resistance levels. The 0.382 – 0.5 Fib retracement resistance zone is responsible for them. The latter is also a horizontal resistance zone, which adds to its importance.
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