As expected in the previous article, Axie Infinity (AXS) saw a pattern breakout towards $54. Now it entered a tight phase as it formed a strong trendline support (yellow) on its daily chart.
Assuming bulls can maintain this trendline support, as they have for over two weeks, AXS would aim to challenge its Point of Control (POC, red) and continue its squeeze phase between the $50 range – $53. After this, the buyers would try to build momentum to negate the $54 resistance. At the time of writing, AXS was trading at $49,996.
AXS daily chart
Source: TradingView, AXS/USD
The retracement phase marked two down channels (white) on the daily chart as the alt lost nearly 74.4% of its value (since its ATH) reaching its six-month low on February 24. As a result, AXS struggled to swing above its 20/50 EMA.
After losing the gold Fibonacci support, AXS has been trying to keep up with selling pressure and maintain the 78.6% support. The $46-$50 range is extremely important to avoid further downfall.
After witnessing a bullish candlestick pattern from the morning star, AXS was able to break out of the latest down channel while forming trendline support (yellow).
A compelling close above the POC would likely cause the alt to cross between its 20 EMA (red) and POC in a tight phase. If the bulls find a close above the $51-$54 range, a short-term trend reversal may be lurking.
rode
Source: TradingView, AXS/USD
The RSI was in line with the price as it tried to find a close above the 42-point level. Taking into account the past retests on the trendline support (yellow), a test of the equilibrium in the coming days could be conceivable.
Nevertheless, the CMF dipped below the zero line in favor of sellers and reconfirmed the possibility of an ongoing squeeze phase near its POC.
Conclusion
As the buyers try to regain their lead, AXS wanted to settle in the $50-$53 range before getting in a position to challenge the $54 mark. Meanwhile, the buyers had to take care of the 78.6% Fibonacci support.
In addition, the alt shares an 84% 30-day correlation with Bitcoin. So keeping an eye on Bitcoin’s movement is essential to make a profitable move.