- Axie infinity price breaks below a critical threshold.
- AXS price hangs by a thread and could drop below $40 if another round of dollar strength kicks in.
- Expect to see AXS drop towards $30 again before bulls can step in – with the RSI then also oversold.
Axie Infinity (AXS) is rolling over this Monday morning as the sigh of relief quickly switches to a sigh of panic from investors. As traders prepare for the week to come, a six-fold risk event has been identified, with big tech reporting this week and investors making similar assumptions based on the market’s reaction to Netflix's earnings. With that negative mood overshadowing markets, expect dollar strength to lead to further declines in AXS price towards $30, printing a new low for the year.
AXS price sees bearish mood weighing with tail risks mounting
Axie Infinity price dropped nearly 10% in the ASIA PAC session today as investors reassessed the situation following the French elections, which now no longer present a tail risk for the altcoin. Where a bullish tone was expected, what positivity there was, turned out to be short-lived as dollar strength came in and pushed almost every cryptocurrency onto the back foot. Investors look absent as with the earnings season this week, big tech names are on the docket to report.
AXS price pierced through $44.45, the support underpinning any bullish move in 2022, and with that, opened the door for a more profound drop. Although new lows have been printed for 2022, expect to see more new lows with $30.93 on the cards as the monthly S2 support level coincides with that low of July 26. That level is due for another support test, and with the Relative Strength Index (RSI) firmly in oversold territory, expect to see an uptick at that level from the bulls.
AXS/USD daily chart
Big tech names in the Nasdaq could still create a tailwind in cryptocurrencies given their correlation. Should any of the big tech stocks report solid and good earnings in contrast to what Netflix reported last week, expect to see investors shaking off their concerns and pushing price-action back above $44.45. Another jump could see gains towards $52.00 and $60.36, should other tech stocks later this week print good earnings.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.