Axie Infinity (AXS) rebounds after a 73% drop from all-time highs
Written on: Februarie 12, 2022
Title : Axie Infinity (AXS) rebounds after a 73% drop from all-time highs
link : Axie Infinity (AXS) rebounds after a 73% drop from all-time highs
Axie Infinity (AXS) rebounds after a 73% drop from all-time highs
Axie Infinity (AXS) rebounds after a 73% drop from all-time highs
Axie Infinity (AXS) is showing compelling signs that the downward movement that has been underway since the all-time high has come to an end. AXS has been down since November 6, when it hit an all-time high of $ 166. The downward movement continued to hit a low of $ 44.42 on January 24th. Measuring from the all-time high, this equated to a 73% drop.
However, AXS has apparently reversed its trend since and has been on the rise ever since. The rebound also served to validate the $ 51 horizontal area as support. The area had previously acted as a resistance on July 2021, and then turned into support in September of the same year. The closest resistance area is at $ 91. This is the 0.382 Fib retracement resistance level and a horizontal resistance area.
Increased Indicator Support
A look at the technical indicators for AXS supports the continuation of the upward movement. The rebound was preceded by a significant bullish divergence in both the RSI and MACD. This divergence was more pronounced in the latter. Furthermore, the RSI has moved above 50. The RSI is a momentum indicator and readings above 50 are considered bullish.
The two-hour chart shows that AXS has managed to hold above the $ 63 minor horizontal support area, which has so far initiated two rebounds (green icons). If AXS breaks down from this zone, the channel's previous resistance line at $ 60 should provide support.
AXS Wave Count Analysis
Cryptocurrency trader @TAfxcryptolab tweeted a chart of AXS, stating that the token is very close to finishing its corrective structure. Measuring from the all-time highs, there is a clear five-wave bearish move, after which a significant rebound usually occurs. In this motion, the fifth wave extended and was nearly the length of the combined waves 1-3 (white).
This possibility is also supported by the fact that the price broke the 2-4 trendline. If the upward movement continues, the closest resistance would be between $ 91 - $ 105 created by the 0.382 - 0.5 Fib retracement resistance levels. As for the short term count, it appears that AXS is on wave four of a five wave upward movement.
The current level could act as a low as it is the 0.382 Fib retracement support level (white) and coincides with a parallel ascending channel connecting waves one and three (white). If AXS fails to hold above the current support level, the next major support would be at $ 59. This is the 0.5 Fib retracement support level and coincides with the resistance line of a channel connecting the highs of waves one and two (black).
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