The price of Axie Infinity (AXS) has dropped nearly 30% two weeks after it lost $625 million following a hacking incident involving the underlying blockchain of game-winning platform Ronin Network.
Independent market analyst TJ He claimed There was no “buyer sign” though the price was shifting to areas with a history of pulling accumulators.
This is what I expected but no sign of buyers so far. Bull div at 4 hours but irrelevant with no change in structure. I want to see the price above this S/R. Until then, straight. pic.twitter.com/HI3V1eLlrp
– CJ (@IrnCrypt) April 9, 2022
For example, AXS fell below the demand zone that TJ highlighted as a potential inflection point over the weekend, a move that risks pushing the price further down towards target range support. It’s about $45 this week.
Will the price of AXS token recover?
The downward trend is visible despite strong assurances that Sky Mavis, the company that created Axie Infinity, will reimburse all users who lost their funds in the $625 million theft. company last week announcement A $150 million raise led by Binance to meet its commitment.
Plus, AXS points to more downsides after painting the cross of death Between the 20-day exponential moving average (20-day EMA; green wave) and the 50-day EMA (red wave).
The area around the $45 level is already served as an accumulation area for traders. For example, the last retest as support in March has rallied from a roughly 70% rebound to around $75. Similar pullbacks occurred in January and February, when the price dropped to $45.
Meanwhile, as AXS tests the key support level, it will cause the daily Relative Strength Index (RSI) to drop below 30 – an ‘oversold’ signal. This suggests Axie Infinity could be due to bounce higher in April.
According to RSI readings close to 25, AXS price is already “oversold” on the four-hour chart. Meanwhile, AXS her falling wedge pattern raid although a down bullish reversal pattern in theory.
The combination of support – with the oversold RSI and the accumulation zone around $45 – increases the potential for AXS to re-enter the wedge range followed by an upside break.
In such a case, AXS/USD could approach $58, a key resistance level from March 2022, based on the theoretical profit target of the falling wedge, measured after adding the distance between trendlines above and below the breakout point.
Conversely, a break of the main support area around $45 could trigger AXS head and shoulders (H&S) pattern on long-term charts.
This is mainly because the $45 level acts as the neckline of the pattern. Typically, a break below the H&S neckline support moves the asset’s downside target to a level with a length equal to the maximum head-to-neckline distance, for example: shown in the chart below.
As a result, the H&S setup risks sending the price from AXS to: 12 dollars in a decisive break.
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Alm Maye has been a trader and analyst since 2013. He specializes in stock markets, Forex and cryptocurrencies. He is the creator of Almvest.com and Imveste.com, two sites dedicated to personal finance. He participates in the development of featured articles on specialized sites such as actions-boursieres.fr and the international network of Finixio.com.
Source From: Google News