By Franklin Smith
Briefly-
- AXS price traverses a declining wedge pattern that indicates an 18% surge towards $111.4.
- However, Axie Infinity might provide a ‘buy’ opportunity around $79 before catalyzing a run-up towards $111.41.
- AXS’s on-chain metrics approve the bullish narrative.
Axie Infinity has been on a gradual downtrend since 4 December. However, the downtrend might witness an end as Axie Infinity nears a crucial price point. The bullish move can start after a slight drop or from the get-go. Either way, investors should be prepared.
AXS Price Ready for Surges
Axie Infinity (AXS) formed three lower lows and five lower highs, creating a sinking wedge pattern. The technical shape predicts an 18% surge towards $111.41, drawn from measuring the distance from the initial swing peak to the swing lows and adding it to the $94.02 breakout point.
However, the upward presumes that AXS overpower the mentioned pattern and attains its target. Nevertheless, the FVG (air value gap) in the $103.2 – $79 will likely hinder the optimistic narrative. Market players can expect Axie Infinity to fill the gap by testing the barrier at $79. That would offer an opportunity to buy at a discount.
Retesting the $79 value area will catalyze a 40% surge towards the declining wedge’s hypothetical aim at $111.41. High bullishness will see AXS extending its upswings towards $123.67.
The IOMAP model supports the fall into the fair value gap as it indicated the next dependable support stand at $79. In this area, almost 31 addresses bought approximately 500,000 Axie Infinity tokens. Therefore, these individuals might support the alt with more AXS buys at discounted levels.
Also, Santiment’s MVRV model shows the possible reversals while it wavers at -16.8%. This on-chain indicator determines the loss/profit of investors that bought Axie Infinity within the past 30 days. The current MVRV value shows losses for investors, and they might trim their holdings, triggering sell-offs. Furthermore, the fundamental index presents an opportunity territory for long-term players.
As everything supports bullishness for AXS, breaching the support barrier at 479 will show weak buying momentum and catalyze a sell-off towards the next floor at $71.51. a 6-hour candlestick close under this barrier will form a lower low, invalidating the bullish case.
Editorial credit: TongRoRo / shutterstock.com