fxstreet.com
- Axie Infinity price is hovering above the 50% retracement level at $138 as it ponders on further gains.
- A dip that retests $131 could trigger a bull rally for AXS, propelling it by 20% to $154.
- A breakdown of the $122 support will invalidate the bullish thesis.
Axie Infinity price looks ready for a quick run-up as it hovers above the trading range’s midpoint. Investors can capitalize on a minor downswing to occur before the uptrend begins.
Axie Infinity price prepares for higher highs
Axie Infinity price has dropped roughly 16% in nearly three weeks to where it currently trades - $138. This current downtrend seems to be going extinct as AXS set up three higher highs and three higher lows over the past week.
Moreover, AXS flipped the 50% retracement level at $138 into a support floor, hinting that it wants to move higher. While this development is a bullish sign, investors need to watch out for a retest of the 62% Fibonacci retracement level at $131 before it kick-starts a new rally.
The resistance level at $148 is the first huddle Axie Infinity price will encounter. Slicing through this barrier will put $154 in front of AXS bulls. This climb will represent a 17% gain from $131.
In a highly bullish case, Axie Infinity price could make a run for the ‘sell side’ liquidity resting above the range high at $165.
AXS/USDT 4-hour chart
On the other hand, if the downswing to retest the 62% Fibonacci retracement level at $131 fails to recover the losses quickly, it will reveal that the buyers are either unwilling or unable to push Axie Infinity price higher.
In this scenario, market participants can expect Axie Infinity price to make a run for the $127 and $122 support levels. A daily close below $122 will invalidate the bullish thesis and could trigger a 10% correction to the range low at $111.