Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
Open Interest was relatively flat as price made another lower low Crucial resistance zone at $11.5-$11.75 for bulls to turn to support
Axie Infinity has announced the release of their latest game, Shine. However, the number of active players has decreased over the past year. Therefore, this latest news cannot be expected to have a significant positive effect on the price of the token.
Here’s AMBCrypto’s Price Prediction for Axie Infinity [AXS] in 2022
From a technical analysis perspective, AXS has been in a downtrend since mid-August. The price traded below the June and July lows, and the trend could remain bearish in the coming weeks.
Lower time frame Bollinger Bands tighten as AXS approaches resistance
On higher time frames, such as 4 hours and daily, the market structure was bearish. Therefore, the lower time frame bias can also be considered bearish. At the time of writing, short-term momentum has been bullish. This was evidenced by the series of higher lows and higher highs recorded by AXS over the past few days.
A strong resistance level that extended into April 2021 was at $11.5. In addition, this same level was important last week. It was even retested as resistance a few days ago. A bearish order block formed and was highlighted in red.
The RSI showed lower bullish momentum for the Axie Infinity token. The Bollinger Bands were a bit tight around the price and indicated that the asset has not been volatile lately. Traded volume was also not high, indicating that the rally from $10.6 was weak.
If the Bollinger Bands see an expansion in the coming hours, it would indicate a return of volatility. In the meantime, the lower band near $11 can be considered a very near-term support.
Open interest flat over the past week as price moves lower
In the past week, Coinglass data showed that Open Interest numbers were around $75 million. This was at a time when the price continued its downward trend and was able to pick itself up from the low of $10.3.
There has been a small rise in the OI over the past three days, but overall the information was not yet usable. If a rise in OI follows a move above $11.5, it could indicate a continuation of the uptrend in the lower time frame. On the other hand, a failure to break past $11.5 could encourage short sellers over the next two days.
This post Can Axie Infinity Bulls prevail and push prices above key resistance level?
was published first on https://ambcrypto.com/can-axie-infinity-bulls-prevail-and-push-prices-above-key-resistance-level/