By Alicia Maher
Axie Infinity has been grappling with a massive sell-off situation, and the token has been attempting to ease the pressure from the market for quite some time now. Buyers have managed to find a neutral price level at $28.9.
The recent market retracement has pushed the popular altcoin to its multiple low price point; Axie Infinity’s native token, AXS, has also marked a downward price line on the daily trading timeframe.
Despite facing a barrier at the upper boundary of the downtrend zone, the bears are looking to retest the robustness of the $28 baseline that has been attained following the stormy days.
At the time of writing, AXS trades at $32.392, a 1043% increase over the past 24 hours.
Furthermore, since mid-March, AXS has managed to form consistent lower highs, which displayed a descending line carved out of the devaluation in the daily trading timeframe. The pullback was steady for nine months which attained its lowest level on April 30.
Buyers Making Upswing Possible
The $28 price mark coincides with the lower trend movement of the downzone; buyers were able to pull off an upswing that spilled over to the next day, but the upper uptrend of the current price pattern happened to be a hurdle to the expected recovery.
Meanwhile, sellers have been reluctant to give up control of the situation amid the downward price movement that continues unabated with no end in sight for traders.
As a show of how critical the current scenario is, a possible retest of the previous $28 price level could drive AXS into a tight spot near-immediate support, which may not be the best thing to happen. Moreover, any close above the expected pattern could reawake the long-term recovery hopes that have otherwise been rested.
This would put the AXS back on track to continue to challenge the limitations it is experiencing, which is formed as a result of the $37K-resistance near the 20 EMA.
Technical Outcome
The Relative Strength Index (RSI) metrics agreed with the latest relief in selling pressure that AXS has experienced. While the RSI may have lurched slightly above the oversold zone, it still needs to end above the $36-resistance to form a strong foundation for a future price breakout rally.
The bearish diversion caused the price to reaffirm the possibility of another short-term correction in the market. While prices have been consistent in moving along the zero-line in the past couple of days, the buyers need to put more effort into consolidating their market control by increasing the buying volume.
Considering the current market changes that have been a constant, a possible retest of the $28 price level could see AXS squeeze into another price situation which will require buyers to find an alternative rally to revive the scenario.
Ultimately, should the buyers manage to keep a hold on the AXS; the token would follow the price pattern of Bitcoin, which would be crucial for making a profit in the long run.