Axie Infinity pricehas been in a continuous downtrend since November 6, 2021, its all-time high. However, the relentless downtrend found a support intersection leading to a bottom and a potential reversal.
Axie Infinity Looks High
Axie Infinity (AXS) The price fell nearly 60% from an all-time high of $165.25 on November 6, 2021, and bottomed out at $65.12 on January 10. Interestingly, the bottom formed deep inside the daily demand zone, which ranged from $58.22 to $69.22, indicating that an uptrend is just around the corner.
While this is a bullish signal in itself, AXS also managed to recover above the weekly support at $71.69, adding confidence to the optimistic outlook. Looking forward, market participants can expect Axie Infinity price to rally to the weekly resistance barrier of $95.07, which coincides with the 50-day Simple Moving Average (SMA).
This rally will form a 30% uptrend and is likely where the bulls will form a local top. However, AXS has a chance to rally at $107.23 for the next hurdle, bringing the overall gain to 47%.
Supporting this bullish outlook for Axie Infinity price, IntoTheBlock’s Global Money In/Exit (GIOM) pattern shows significant resistance at $124.73.
Here, 700 addresses that bought around 8.26 million AXS tokens are “Runned Out” and even if the price of Axie Infinity rises to this level, it seems likely that they will sell their holdings to break.
Finally, the Market Value to Realized Value (MVRV) model can be seen where short-term holders have spent the second part of the last three months in the negative or underwater zone.
This on-chain metric is used to determine the average profit/loss of investors who bought AXS in the last month.
A negative value indicates that short-term investors are at a loss, and long-term investors tend to accumulate because the risk of disposal is low. Moreover, this value increased from -24% on 6 January to 8% on 18 January, indicating the accumulation of long-term holders.
Regardless of the upside, a lower low would have been created if Axie Infinity price cuts the demand zone at $58.22 to $69.22 and shows a daily candlestick below $58.22.
In this case, the odds will be turned in favor of the bears and the bullish thesis will be invalid. Such a situation AXS priceIt may result in the withdrawal of the coin to $ 48.06.
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.