- Axie Infinity bears broke below the 55-day SMA during the weekend.
- AXS bears were able to push price further down below $60.36
- The subsequent profit-taking level for bears is at $51.91
Axie Infinity (AXS) price action is tilted to the downside as sentiment in AXS soured during the weekend. The break of the supportive 55-day Simple Moving Average (SMA) got broken to the downside at $64 and has turned into resistance in today's trading session. Further downside is eyeing $51.91 as the next profit-taking level for bears in Axie Infinity.
Axie Infinity price action could shed 14% of value in another leg lower
Axie Infinity was already in a bearish triangle. The descending trend line from August 21 has kept price action to the downside, except for the false breakout at the beginning of September. As September continued, buyers could not even keep AXS price above $73.62 as there was no support for another leg higher. With that level not holding any support and switching to resistance, bulls have tried to ramp AXS price back up toward there but failed and created a descending trend line as a technical element.
Axie Infinity bears have used this descending trend line as a reference point. Around $72 sellers will seize the opportunity to enter some sizable short positions, with a stop safely above that marked level at $73.62. The sellers from these trades will not hurry to give up gains as their positions are currently in the money.
AXS/USD daily chart
With the push to the downside and sellers sitting on their positions, the break of the 55-day SMA around $64 must-have hit and hurt some bulls. Expect them to stand on the sideline as well, as they will want to wait for this short trade to play out before trying to get in Axie Infinity price action again. Proof on that is that the $60.36 has been broken on a third retest, and price action moved quite easily below it. Profit-taking on those short positions in AXS will happen around $51.91, which was the low on September 7 and looks suitable for a retest.
If buyers start buying the dip prematurely, expect a possible reversal of the adverse price action AXS has had today. Still, the descending trend line will be difficult to break. Bulls will need a catalyst or an incentive to go long in size so that sellers can get squeezed out of their positions and stops.
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.