Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
The crypto market has been in a strong downtrend for the past week, but has seen a significant jump in the past few hours. Bitcoin led the attack and saw a short-term rally from $20.5k to $22.8k. This 10% upward move spurred many altcoins to also have a bullish break. Axie Infinity also made significant gains from the previous day’s $12.6 lows to reach resistance at $16.2. Can the buyers keep up with this pressure, or was it a setback before another pressure got lower?
AXS-1 hour chart
The hourly price chart has shown a downward trend for AXS for the past few days, characterized by a series of lower highs and lower lows. Two of the most recent lower highs are $15.41 and $16.17 (white). Additionally, the $15.4 area (cyan box) represents a supply area that could have been converted to demand in the past few trading hours.
The rally from $13 to $16.2 broke above this supply zone and threatened to turn the market structure into bullish. A bullish bias would be warranted if buyers can defend the $14.95 and force AXS back above $16.17.
The plotted Fibonacci retracement levels (light yellow) showed the 38.2% retracement level at $16.24, adding confluence to this area of resistance.
The RSI crept above the neutral 50 line the previous day. Recent trading hours forced a fresh rise to 70 to show that short-term momentum was strongly bullish. The OBV also saw an upward spike to indicate significant buying volume behind the AXS rally.
The DMI showed that an uptrend is underway in the near term. Both the ADX (yellow) and +DI (green) were above the 20 level.
The indicators showed bullishness behind AXS, but the price action was undecided. A move past $16.24 could see Axie Infinity rise towards $19. Meanwhile, a move below $14.95 would indicate that the rally has ended.
This post Axie Infinity [AXS] gearing up for a rally, but do the buyers have enough strength?
was published first on https://ambcrypto.com/axie-inifnity-axs-gearing-up-for-a-rally-but-do-its-buyers-have-enough-strength/