Altcoins

Axie Infinity [AXS] advances on the price chart but could the bears have laid down a trap?

Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the opinion of the author.

On a better timeframe chart, Axie Infinity [AXS] fashioned a variety since mid-June. One other level to notice was that this vary was proper beneath a stiff resistance zone at $18. Bitcoin [BTC] additionally confronted resistance within the $23k zone. For AXS, a transfer upward could possibly be potential. Nonetheless, the longer-term development remained bearish, and the previous month’s sideways buying and selling may not imply the top of the downtrend.

AXS- 1-Day Chart

Axie Infinity [AXS] advances on the price chart but the bears could be waiting to spring a trap

Supply: AXS/USDT on TradingView

On the every day chart, a powerful downtrend was current from early November. In March, this downtrend gave the impression to be damaged. Nonetheless, the break rapidly became a bull lure as the value continued to descend as soon as extra. In June, the value slipped beneath the $18 space (purple field) which had acted as a requirement zone in Could.

In mid-June, AXS fashioned a variety (cyan) between $12.2 and $18.3, with the $16-$18 space being a very heavy resistance space. The Relative Power Index (RSI) has been beneath the impartial 50 line since early April, exhibiting a gentle and robust downtrend in progress. The value was additionally on the mid-point of the vary (dotted white), which represented yet one more resistance.

Even when the value poked above the mid-point of the vary, and the RSI breaks previous the impartial 50 line, a hidden bearish divergence would develop. The event of such a divergence with the value headed into the resistance zone would additional spotlight a bearish case for AXS.

AXS- 4-Hour Chart

Axie Infinity [AXS] advances on the price chart but the bears could be waiting to spring a trap

Supply: AXS/USDT on TradingView

On the four-hour chart, a extra bullish bias was obvious. The RSI has flipped the impartial 50 line to help, and the value has made a sequence of upper lows over the previous week. Therefore, the bias was bullish going into the weekend.

The Parabolic SAR gave a purchase sign and the 20-period SMA was revered as help over the previous week. The Bollinger bands had been climbing over the previous week however didn’t widen to indicate heightened volatility. Moderately, the value was inside a gentle decrease timeframe uptrend and examined the mid-range as resistance.

Though the momentum was bullish, the A/D line has been falling in latest weeks. The latest push upward was not backed by a big spike on the A/D indicator. This meant that demand was weak behind AXS.

Conclusion

The shortage of robust demand, in addition to the upper timeframe development, was in favor of the sellers. Decrease timeframes hinted at a bullish bias, and a potential transfer towards $17-$18 might materialize over the following few days. Aggressive merchants can place themselves lengthy on AXS, with a stop-loss beneath the 4-hour Parabolic SAR at $14.74. Extra risk-averse merchants can look to quick the asset close to the vary highs.

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