Axie Infinity is set to tank another 20% as geopolitical headwinds persist
|- Axie Infinity price action will shed 20% market value, falling towards $44.45 as headwinds persist.
- AXS has only one supportive element that could provide a turn-around.
- Once the low is reached, expect a rally to start with 67% upside potential.
Axie Infinity (AXS) has already breached last week's low and looks set to dip another 20% in search of support against these global headwinds that are sweeping the markets. Geopolitical tensions are the primary driver today, with several indices in the red and cryptocurrencies on the back foot. Expect a dip towards $44.45 before bulls can get in and start a rally as the geopolitics fade, which could tick 67% of gains by taking AXS price up to $73.62.
Once the geopolitical headwind fades, expect a prosperous bull rally
Axie Infinity price action has broken below $60.36 this weekend after some harsh language between Biden and Putin on Friday evening. The comments from FED's Bullard only added more oil to the fire as he came out saying a 50 basis point hike is on the cards for March. This created massive pressure in global markets with risk-off across the board and cryptocurrencies in the penalty corner.
But AXS bulls need to look beyond the geopolitical picture and will need to define entry points at the lower end of the current price action because a relief rally could see some solid gains to the upside. With not much in the way, the $44.45 handle looks to be the best entry point, as it held a few weeks ago and is the low of 2022. With that, AXS will have dipped 20%, and the Relative Strength Index will have reached the oversold area, so all the elements will fall in line to spark a rally.
AXS/USD daily chart
An escalation resulting from a full-fledged war will, of course, only make the current headwind increase in strength and push cryptocurrencies further to the downside. Expect a break of the $44.45 handle that could shed another 26% of the already forecasted 40% of losses. With price action just above $30.00, expect investors to wait for a firm and solid confirmation that the worst is over before engaging in the AXS price action again.
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