Axie Infinity priceEarlier this week, it faced two different scenarios: a bounce and retest to reach $90 or a drop towards $31. Heading into the weekend, it looks like the bears have taken control and pushed Axie Infinity to 2022 lows.
Price Drops To $31 If Axie Infinity Fails To Hold The $45 Support
Axie Infinity (AXS) The price managed to surpass the shared support zone at the $45 level of the 38.2% Fibonacci retracement and the top of the weekly Ichimoku Cloud. As long as the bulls do not exist to support AXS, there is a good chance that the bears will drop the Axie Infinity by more than 33% and push it towards the $31 level, the 50% Fibonacci retracement.
This move may actually be the move that should occur in AXS price. Axie Infinity is the only primary with no 50% logarithmic retracement from all-time high to monthly strong bar low metaverseIt remains one of the /game token class cryptocurrencies.
However, further bearish price action will become increasingly difficult to achieve. This is because significant gaps remain between Tenkan-Sen and the bodies of daily candlesticks.
Within the Ichimoku Kinko Hyo system, Tenkan-Sen does not tolerate significant gaps between itself and candlestick bodies. When gaps do occur, they usually resolve immediately, but usually do not exceed four to six periods. An average fallback setup becomes more and more likely as lower AXS goes.
Additionally, Axie Infinity’s oscillators continue to sit in oversold conditions, putting more weight on the possibility of a bullish average reversal very soon.
To limit how much further the bears can push AXS, the bulls will need to keep the Axie Infinity price at $46 or above. If the bears provide a daily close below the 38.2% Fibonacci retracement, a quick drop to $31 can be seen on the downside.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.