Jonathan Morgan
Independent Analyst
- Axie Infinity price remains extremely overbought relative to its peers and the broader market.
- Downside risks, however, are limited compared to upside potential.
- AXS now positioned for strong trades on both sides of the market.
Axie Infinity price has been one of the best performers of 2021. Despite the selling pressure and the broader cryptocurrency market has experienced, AXS has maintained nearly all of its impressive gains. But a deeper pullback may yet occur.
Axie Infinity price may find sellers as capital rotates into undervalued assets
Axie Infinity price has two powerful trading opportunities on its Point and Figure chart that represent the long and short sides of the market. The first trade idea is a theoretical long entry with a buy stop order at $130, a stop loss of $115, and a profit target at $180. This trade idea represents a 3.33:1 reward for the risk.
Because the overall trend is bullish, the long entry for the Axie Infinity price idea is the most likely to play out. Also, the long entry has several bullish events if triggered. First, the entry confirms the breakout above a triple-top. Second, the entry confirms a breakout above a bull flag. And third, the entry is a breakout above the prior dominant bearish trendline and converts the Point and Figure chart into a bull market.
AXS/USDT $5.00/3-box Reversal Point and Figure Chart
The long entry idea is invalid if Axie Infinity price drops below $90.
The hypothetical short trade setup for Axie Infinity price is a sell stop order at $95, a stop loss at $110, and a profit target at $65. The short idea represents a 2:1 reward for the risk. The entry confirms a break below a triple bottom and the creation of new monthly lows.
AXS/USDT $5.00/3-box Reversal Point and Figure Chart
The short trade idea is invalidated if the long entry triggers.
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.
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.