AXS Forms Pennant Near All Time High, What’s Next?
- AXS is down nearly -10% over the last week
- Price has formed a bullish pennant
- AXS has been held by 120MA for 2 months
Axie Infinity (AXS) has experienced an amazing amount of growth over the last few months as the NFT market has surged to record highs. The game, Axie Infinity, is an NFT based online video game that uses the Ethereum based cryptocurrency, AXS. This metaverse type game has experienced an immense amount of growth over the last few months as AXS’s NFT collection is the most expensive collection of all time. Even though this use case has huge potential for the future, AXS price seems to need a larger correction before it can continue growth.
Over the past 6 weeks, AXS price has been holding a trend line that bulls have defended very well. Just over the past two days, AXS broke below this trend line & seems to have confirmed it as resistance. This is a bearish scenario as long as AXS doesn’t regain this trend line. Ever since AXS broke over $65 a few weeks ago, it has been held as support.
Along with AXS holding this as support, price has formed a pennant. This pennant is usually a bullish one, but in this case it seems AXS is more likely to break to the downside of this pennant.
AXS Price Analysis: AXS/USDT 4 Hour Chart
If bulls fail to hold the current support of $70.89, price will then break to the downside of its pennant. This will be a bearish scenario & will land AXS at $65 minimum. If bulls fail to provide a bounce there, AXS is in for a large fall to potentially the $50 range. At the time of writing, AXS price is flirting with the 120 MA which has held as support for over 2 months. If AXS breaks below this MA, we can then confirm it is in a downtrend. For AXS price to go for another high, it must break to the upside of its pennant & hold the major resistance zone of $77.
- While looking at the Stochastic RSI, we can see strength just got rejected within the overbought region & has since started heading down to the 50 value. If strength breaks below the 50 value, AXS price will likely break to the downside of its pennant.
- The MACD has been in a downtrend ever since the pump to $77 back on August 10th. A trend line is shown & this trend must get broken for AXS to have a shot at continuing its bull trend.
AXS Intraday Analysis
Spot rate: $71.88