The price of Axie Infinity shatters the support levels if it falls off a cliff. This massive decline is the result of two reasons: market conditions and a top reversal pattern that has formed over the course of eight months.

The price of Axie Infinity prepares for the second crash

Axie Infinity put head and shoulders on the daily chart. This pattern features three distinctive highs with swing lows bouncing off a steady support level. The central peak is usually larger than the rest and is called the ‘head’. While the crests on either side of the head are known as ‘shoulders’ and are of similar height. The swing lows can be linked together to form a ‘neckline’ by means of a horizontal trendline.

This setup is a popular reversal pattern and usually indicates the distribution in the asset followed by the end of the uptrend. The goal for this setup is obtained by measuring the distance between the top of the head and the neckline and adding it to the breakout point. This method predicts a 72% crash to $12.38.

For the Axie Infinity price, the breakdown occurred on April 25, when AXS produced a daily candlestick that was close to the neckline at $45.22. This move was followed by a massive sell-off that crashed the altcoin by 63% in about 16 days.

While the technicalities played a role, the downtrend was exacerbated by the market conditions and the events occurring with the LUNA-UST debacle.

Anyway, the price of Axie Infinity is close to retesting its target, but the bulls seem to be stepping in. As a result, AXS is up 37% since May 11 and is likely to continue rising.

After a retest of the $45.22 hurdle, AXS is likely to collapse again, but this time it will hit its predicted target at $12.38. This move would equate to a 52% crash and is likely where a local bottom would form.

Source: TradingView, AXS/USDT 1-Day Chart

This short-term upward trend in Axie Infinity price is supported by the increase in on-chain volume from 233 million to 1.03 billion in the past five days.

This spike occurs while the asset’s value is falling, indicating a bullish divergence. Therefore, investors can wait for the first spike and go short when retesting the hurdle.

Source: Saniment

This post Axie Infinity: how to short-circuit the 50% crash that AXS is going to suffer?

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