As predicted within the earlier article, when the 20 EMA (purple) jumped above the 50 EMA (cyan), Axie Infinity (AXS) retested the golden Fibonacci degree. Then, the worth fell in direction of its rapid trendline assist (white).
Now, the bulls would possible counter the current sell-off by aiming to reclaim the $59-$60 vary earlier than making a trend-commital transfer. At press time, AXS was buying and selling at $55.214, down by 4.46% within the final 24 hours.
AXS Every day Chart
After testing the 61.8% Fibonacci degree, AXS consolidated within the $63-$68 vary earlier than a streak of bearish engulfing candlesticks. It was down by almost 20% in simply the final three days.
Since dropping the vital 61.8% Fibonacci assist, the bears have made some extent to make sure the durability of their resistance. On its manner down, AXS hovered round its Level of Management (POC) earlier than plunging in direction of its three-week trendline assist.
Except the patrons again the present revival with stable volumes, the bulls would battle to sway above the 20/50 EMA. Through which case, the alt would fall again to check the trendline assist and proceed its gradual streak of upper troughs. An in depth above these EMAs would supply sufficient energy to patrons for consolidating close to its POC.
Rationale
After dropping the midline assist, the RSI lastly discovered a flooring at its trendline assist. This restoration ignited a hidden bullish divergence on its day by day charts. A continued rally might face resistance close to the equilibrium.
The CMF visibly depicted a one-sided bearish momentum. The current plunge pulled it in direction of its 11-week low whereas affirming a hidden bullish divergence with worth. So, a rise within the cash volumes from this degree appeared possible within the days to come back.
Conclusion
Contemplating the divergences of worth with its RSI and CMF, AXS might check the $60-mark earlier than a attainable pullback. If the bulls do handle to cross the near-term EMAs, they might push for a POC retest within the days to come back.
To high it up, the altcoin shares an 83% 30-day correlation with Bitcoin. Thus, keeping track of Bitcoin’s motion can be important for making a worthwhile transfer.