Axie Infinity bound for another dip before AXS can resume its uptrend
|- Axie Infinity price nearing a gap fill within the Ichimoku Kinko Hyo system.
- Deeper retracement beyond near-term support is likely.
- Axie Infinity is expected to continue its outperformance against the broader market.
Axie Infinity price continues to outperform the broader cryptocurrency market but has spent the past couple of weeks filling a gap between the bodies of the weekly candlesticks and the Tenkan-Sen. As a result, AXS would need to fall a further 15% from the current weekly candlestick open to return to the weekly Tenkan-Sen.
Axie Infinity price could fall as much as 35% before resuming its uptrend
Axie Infinity price has a very high probability of moving beyond the projected 15% drop to the weekly Tenkan-Sen ($112) in the near term. The volume profile has a precipitous drop between $114 and $70. Consequently, the weekly Kijun-Sen is at $80 and shares the same high volume node near $70.
The likelihood of a fall to the $70 -$80 support zone increases with the current status of the Relative Strength Index (RSI). The RSI is trading between the two overbought levels in a bull market, 80 and 90, for the past 20-weeks. The current weekly candlestick is the first in 20 weeks to spend any considerable time below the 80 mark. This is a warning that any retracement could be strong and sustained.
AXS/USDT Weekly Ichimoku Chart
However, bears shouldn’t be overconfident nor expect a straightforward deep sell-off. Axie Infinity price has respected the Tenkan-Sen as its primary support level since the beginning of July. Additionally, sentiment, fundamentals, and forward guidance continue to support higher valuations for Axie Infinity price. If AXS does dip lower to the Tenkan-Sen at $112 and finds support, then Axie Infinity could be poised for another move to all-time highs. This time, targeting the $200 value area.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.