• Axie Infinity price action tests support on the monthly S2 at $51.90.
  • AXS price looks set for a rebound as the low from Sunday holds.
  • Expect bears to get trapped in the false break below S2, getting squeezed out.

Axie Infinity (AXS) looked set for another leg lower, but bears are getting trapped on their entries on the break of the monthly S2 again. The low from Sunday still holds for now and could be the start of a squeeze on the bears that could go all the way up towards $60.36, holding 20% gains. Vital for this setup is that indices in both Europe and the US can go out with a green print.

Axie Infinity bear trap depends on green numbers in the equity space

Axie Infinity bulls have a tough nut to crack with bears still present and squash every bullish attempt marked in the Relative Strength Index (RSI) with an uptick away from the oversold area. But the joke could be on the bears for once, as bears are until now still unable to firmly break below the S2 and historical support at $60.36. Even the low from Sunday is not yet in sight for a test, so bulls are doing their part of the work to keep momentum present. 

AXS price thus could simply be taking a breather for the day, trapping bears in the process, and now see bulls coming in yet again for the US session, lifting price back above $51.90. Should earnings this week further surprise the upside, expect the high of Sunday to be tested and break, squeezing out further any bears positions. This should pave the way for hitting $60,36 by the end of this week.

AXS/USD daily chart

AXS/USD daily chart

With earnings season, some significant tech stock is set to publish its earnings this week, which could still hold some downside surprises, triggering further selloff inequities. Expect cryptocurrencies to see that correction being extended into their asset class, with AXS dipping below last week's low around $45 and opening up a correction towards $26.70. That would mean another 45% of losses as both a stronger US dollar and risk-off sentiment would weigh in on the price action.

 


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


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

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.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

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.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

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.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

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.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

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.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP