- AXS ended its downward actions by forming a reversal level around $65.12.
- The latest recovery past the weekly support floor at $71.69 indicates a possible 30% upward move towards $95.07.
- Losing the barrier at $65.12 may ruin the positive outlook.
Axie Infinity (AXS) has registered constant drops since hitting an ATH on 6 November 2021. However, the drastic plummet secured support confluence, forming a bottom. That way, the altcoin highlights potential reversals.
AXS Price Aims Higher Levels
AXS price plunged by almost 60% from the $165.25 ATH recorded on 6 November 2021. Meanwhile, the alt printed a swing low near $65.12 on 10 January. Surprisingly, a bottom emerged inside the demand territory, extending between $58.22 and $69.22, indicating a possible upward price move.
Furthermore, Axie Infinity recovered past the weekly support barrier at $71.69, supporting the optimistic narrative. For now, market players may expect AXS to gain upside momentum and surge towards the weekly resistance zone at $95.07, matching the 50-day SMA.
The upswing will mean a 30% surge, and bulls may form a local top following the ascent. However, the altcoin has a probability of surging towards the hurdle of around $107.23, translating to a 47% total gain.
The IntoTheBlock’s GIOM model supports Axie Infinity’s bullish outlook. The index shows considerable resistance around the $124.73 value level. Here, 700 addresses that bought almost 8.26 million Axie Infinity tokens remain out of money. These individuals might trim their asset treasury to break even whenever AXS surges to that mark.
Finally, the MVRV model indicates that near-term holders spent the past three months’ last part remained in the underwater region. This indicator determines investors’ loss/profit within the past month’s token purchases.
A negative reading indicates near-term traders are at losses. However, long-term investors accumulate in this situation since it boasts low sell-off risks. Furthermore, the value was gained from -25% (6 January) to -8% on 18 January. That highlights accumulation by long-term investors.
Despite the bullishness, AXS slicing the demand zone at $58.22 – $69.22 might translate to a daily candle close beneath $58.22, creating a lower low. Such conditions will mean bearish favoritism and ruin the bullish outlook. With that, Axie Infinity might plunge to $48.06.
Stay tuned for more updates.
Editorial credit: FellowNeko / shutterstock.com
