AXS: Amid broader market recovery, here’s where to consider buying

Disclaimer: The findings of this analysis are the authors’ sole opinions and should not be considered investment advice.

In the past few days, Bitcoin has surged from $34,800 to test the $39,000 resistance level and even climbed past it on February 25. This created short-term buying opportunities in the market as traders tried to catch the altcoins that were making some profit. One was Axie Infinity’s token, AXS, which climbed past a demand area after drifting south.

AXS-1H

Source: AXS/USDT on TradingView

An article earlier this week noted that USD 38 could be revisited, but AXS bulls halted the decline at USD 42. The $44-$48 demand area has since rolled back to support, and the price has also moved above $46. This progress is in line with Bitcoin’s rise of $34,800, showing exactly why BTC is hailed as the king.

In the past 36 hours, the price has formed a rising wedge pattern (yellow). This generally sees the price drop, but in this context, the drop might just be a pullback.

This is why

The drop below USD 44.5 did not show a sharp decline. Rather, it appeared that the shorter-term price had fallen to open short positions before climbing back above USD 44.5 and USD 46. This forced the short positions to close, causing AXS to move towards USD 50.

That’s why the savvy players have revealed their hand – after chasing the liquidity below $45, they are now likely to push to the next bands of significant liquidity. These are the $55.5 and $63.25 levels.

rode

Source: AXS/USDT on TradingView

The RSI and Awesome Oscillator showed momentum was deeply bearish a few days ago but has since returned to bullish territory.

The OBV showed that the $45 rally was based on real demand, and the OBV saw a sharp move north. A level was marked on the OBV and if the buying volume could rise past it in the next few hours, AXS could move towards $55.5 and $63 in the coming days.

Conclusion

Much depends on how Bitcoin price action plays out in the coming days. Global markets recovered somewhat from the previous day, but are closed for the weekend and Monday could change the story significantly. Therefore, while AXS offered a buying opportunity between $46-$49, this bias should be tempered with caution.

Leave a Comment