Axie Infinity priceBounces from the 3-day demand zone from $58.22 to $69.22, indicating the start of an uptrend. Traders can expect AXS to rise 30% and retest the weekly resistance barrier at $94.98.
On the other hand, breaking the $58.22 support level will invalidate the bullish argument. Axie Infinity (AXS) The price dropped below a crucial high timeframe support level, resulting in a steep correction. This decline seems to have come to an end with AXS bouncing off another significant level and starting a massive uptrend.
Axie Infinity price preparing for a bull rally
Axie Infinity The price is down roughly 33% after breaking above the weekly support at $94.98. This downward move turned the said support into a resistance barrier and sliced the 200-day Simple Moving Average (SMA) at $85.17.
However, a 3-day demand zone stretching from $58.22 to $69.22 came to the rescue by absorbing the incoming selling pressure. As a result, AXS has rallied roughly 15% and looks set for another uptrend.
Short-term traders can open a long position on the current position or wait for the region to be retested.
The 200-day SMA at $85.17 will be the only hurdle in the way and breaking it will allow Axie Infinity price to retest the weekly resistance barrier at $94.98. This move will create a 28% rise, a level where investors can profit.
While the bullish outlook looks solid, things could quickly go wrong for Axie Infinity price if Bitcoin decides to make a U-turn. Any dip that pushes AXS to a daily close below the lower limit of the 3-day demand zone at $58.22 will create a lower low and invalidate the bullish argument.
This development could open the way for Axie Infinity price to drop another 5% and revisit the $56.03 support base.
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.