Axie Infinity price takes a nosedive; AXS bulls target $60 if support holds

Axie Infinity price hits a target zone previously identified earlier in the week.
Bears are carrying the selling pressure beyond the $45 support zone.
Failure to hold support at $45 could trigger a flash crash towards $31.

Axie Infinity price faced two scenarios at the beginning of the trading week: a bounce and retest of $90 or a drop towards $31. As AXS transitions into the weekend, bears look to have taken control and pushed Axie Infinity to new 2022 lows.

Axie Infinity must hold $45, or else it will slide to $31

Axie Infinity price breached the shared support zone at $45 of the 38.2% Fibonacci retracement and the top of the weekly Ichimoku Cloud. Unless bulls come in to support AXS, then bears have an easy road to drop Axie Infinity more than 33% to the 50% Fibonacci retracement at $31.

And that may be the move that must occur. Axie Infinity remains one of the only primary metaverse/gaming-token class cryptocurrencies that has not had a 50% logarithmic retracement from its all-time high to the low of the monthly strong bar.

However, further bearish price action is likely to become increasingly difficult to achieve. This is because there remain significant gaps between the Tenkan-Sen and the bodies of the daily candlesticks. Within the Ichimoku Kinko Hyo system, the Tenkan-Sen does not tolerate significant gaps between itself and the bodies of candlesticks. When gaps appear, they often resolve immediately, but usually no longer than four to six periods. A mean reversion setup becomes increasingly probable the lower AXS goes.

AXS/USDT Daily Ichimoku Kinko Hyo Chart

Additionally, Axie Infinity’s oscillators continue to sit in oversold conditions, giving more weight to the likelihood of a bullish mean reversion very soon. Bulls will need to close Axiey Infinity price at or above $46 to limit how much further the bears can push AXS. If bears close AXS below the 38.2% Fibonacci retracement, then a fast drive south towards $31 is highly probable.

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.