Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
The buyers were finally able to ease the selling pressure by finding reliable grounds in the $18-$20 range. As the correction phase slackened on the chart, Axie Infinity (AXS) entered a tight phase between its symmetrical triangle.
Should the breakout candlestick find a strengthening close above the Point of Control (POC, red), AXS could see itself testing the robustness of the $24 level. At the time of writing, the alt was trading at $21,471, up 4.64% in the past 24 hours.
AXS daily chart
Since the end of March, the sellers have practically been the driving force in the AXS market. The bears doubled their pressure and caused a downward channel devaluation on the daily time frame. The string of red candles turned into a head and shoulder early this month.
As a result, an expected breakdown pulled the alt to a nine-month low on April 30. Meanwhile, AXS witnessed a symmetrical triangle on his map as he lunged towards his POC. The sellers did not give up their lead, while the EMA ribbons still refrained from looking south.
If buying efforts to topple the POC come to fruition, AXS would expose itself to a near-term uptrend. Despite the too large distance between the EMA ribbons, they would still offer strong resistance buying rallies. Should buyers shrink, any close below USD 20 could trigger a retest of the USD 18 baseline for a bullish comeback.
The reading of the RSI indicated a gradual increase in buying pressure. Although it hovered just above the oversold mark, it still had to find a close above 36 resistance to allow for a breakout rally on the alt chart.
Furthermore, any reversal of the CMF’s direct trendline resistance would confirm a bearish divergence with the price.
Given the current market dynamics, it would be quite difficult for the buyers to pull off a trend-changing rally. Any close above the POC could lead to near-term gains against its target of $24-$26. But the threat looming over the CMF could curb the chances of a near-term rebound.
Finally, the altcoin shares a 91% 30-day correlation with Bitcoin. So keeping an eye on Bitcoin’s movement is essential in order to make a profitable move.
This post With a breakthrough ahead for Axie Infinity [AXS] you have to pay attention to this
was published first on https://ambcrypto.com/with-a-breakout-on-the-cards-for-axie-infinity-axs-heres-what-you-should-look-out-for/