Monday, February 6, 2023

Axie Infinity Sees No Buyers As AXS Price Crashes 30% In 2 Weeks

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Axie Infinity sees no buyers as the token price crashes 30% in two weeks so let’s read more today in our latest cryptocurrency news.

The aXS price tested a key inflection area which often acted as a strogn support. Axie Infinity sees no buyers and the AXS token dropped by 30% in two weeks after losing $625 million in the hack attack involving the play-to-earn gaming platform’s blockchain, the Ronin Network. The AXS/USD dropped to $46.99 which is the lowest level since March which also signals a dampening buying sentiment among the traders and investors following the attack.

AXSUSD daily price chart featuring demand areas. Source TradingView

The analyst TJ asserted that there’s a sign of buyers even with the price entering new areas with a history of attracting accumulation. For example, AXS broke the demand zone that the analyst outlined as a potential inflection point over the weekend and this is a move that sent the price lower towards the range support target of $45. the bearish prospects appear despite the strong assurance from Sky Mavis with the company built Axie Infinity which will reimburse the users who lost funds in the $625 million theft the last week, the company announced a $150 million raise led by Binance in order to honor the promise.

AXS hinted at a bigger downside after painting a new death cross between the 20-day exponential moving average and the 50-day EMA. The area around the level earlier served as an accumulation zone for the traders and for example, it last retested the support in March preceded a 70% rebound move to nearly $75. Similar retracement moves occurred in January when the price dropped $45. in the meantime, AXS tests a key support level and will prompt the daily relative strength index to move lower than 30 in an oversold signal and this suggests Axie Infinity can be due for a higher bounce.

The AXS price is already oversold on the four-hour chart as per the RSI readings close to 25 and in the meantime, AXS is breaking out of the falling wedge pattern to the downside despite it being a bullish reversal pattern. The support confluence with an oversold RSI and the accumulation zone near $45, raised the coin’s potential to re-enter the wedge range which was followed by a breakout of the upside. If this happens, the AXS/USD can move to $58 based on the falling wedge’s profit target measured after adding a distance between the upper and the low trendline to the breakout point.

AXSUSD four-hour price chart featuring ‘falling wedge’ setup. Source TradingView

Breaking below the key support area near the $45 can trigger AXS’s head and shoulders set up on the charts. This is mainly because the level serves as a pattern’s neckline and as a rule, the break below the neckline support shifts the asset’s downside target to the level of equal length to the max distance between the head and the neckline.

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