Axie Infinity buyers attempted to cool the intensified sell-off condition by securing reliable footing near the $28 mark within the past couple of days. As the retracement dragged to token towards multi-month lows, AXS chalked this phase in a downside channel within the previous month.
The nearest floor remains crucial in detecting future price actions that might send Axie Infinity into a constricted area. While writing this content, the alt trades weak at $28.09.
Axie Infinity Daily Chart
Axie Infinity marketplace has never disappointed sellers since March 25. The alternative token consistently saw troughs and lower highs. The descending channel remained intact as the channel’s topside trend-line halted all upside recovery attempts within the past five weeks.
The devaluation dragged AXS down towards 9-month lows on April 30. Meanwhile, the altcoin saw a declining wedge pattern on its daily chart. Sellers appear committed as the 20 Exponential Moving Average maintained its southward actions. Buyers battled to protect the support at $28, coinciding with the wedge’s bottom trend line.
As the current declining wedge patterns near the $28 level, AXS buyers might target renewed pressure. Meanwhile, a closing beyond the wedge setup would position the alt for potential breakouts from the reversal setups. The 20 Exponential Moving Average and the $37 might continue challenging the recovery wave.
Nevertheless, the recovery narrative depends on price movements around the $28 floor. Keep in mind that the current market conditions favor bears. Therefore, AXS can breach the $28 floor anytime without hurdles.
Reasoning
The Relative Strength Index confirmed the latest buying strength increase. While hovering beyond the oversold level, the indicator requires a closing beyond 36-resistance to trigger a breakout rally. Meanwhile, the OBV noted a bearish divergence with Axie Infinity price. Buyers should strengthen volumes for upside actions.
Final Thought
Axie Infinity might witness a possible recovery according to the token’s previous tendencies to protect $28 and the declining wedge pattern. Nevertheless, OB threats might delay the highlighted revival until AXS buyers regain momentum to enhance buying volumes.
Finally, the token boasts an 84% monthly correlation with BTC. Enthusiasts should watch the king crypto to ensure profitable undertakings.
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