Axie Infinity [AXS] buyers could aim to propel recovery toward this range

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Dis­claimer: The find­ings of the fol­low­ing analy­sis are the sole opin­ions of the writer and should not be con­sid­ered invest­ment advice.

As Axie Infinity[AXS] approached its $11-$12 year-long sup­port range, the buy­ers stepped in to inflict an up-chan­nel (yel­low) revival.

Con­se­quent­ly, AXS hiked above the basis line (green) of the Bollinger Bands (BB) to test the $15 resis­tance. The break below the chan­nel has exposed AXS to a like­ly down­side in the com­ing ses­sions. At press time, AXS was trad­ing at $13.945, down by 6.19% in the last 24 hours.

AXS 4‑hour Chart

Source: Trad­ingView, AXS/USD

The alt’s rever­sal from the $27-lev­el since ear­ly April pulled it down toward its year-long sup­port. Mean­while, AXS marked a three-week trend­line resis­tance turned sup­port (yel­low, dashed). 

The alt­coin lost over 58% of its val­ue (from 31 May) and plunged toward its 11-month low on 19 June. As the buy­ers final­ly swooped in, AXS reg­is­tered gains and found a spot above the basis line of BB. With the upper band of the BB and the $15-mark cre­at­ing a stiff bar­ri­er, the alt saw an expect­ed drawdown. 

The fall below the up-chan­nel con­firmed a break­down. The sell­ers could now aim to test the POC in the $13-zone before any bull­ish revival prospects.

A sus­tained close below the basis line can pull AXS toward the $13.5‑support. A close below this lev­el can extend the down­side toward the trend­line sup­port. On the flip side, an imme­di­ate revival from the POC can give the buy­ers a much-need­ed boost to retest the $14-$15 range before any reversals.

Rationale

Source: Trad­ingView, AXS/USD

The RSI’s equi­lib­ri­um has flipped into resis­tance after the sell­ers exhib­it­ed their edge over the last day. Although the index was near the neu­tral zone, the buy­ers need­ed to ensure a close above the mid­line to reclaim their advantage.

Hav­ing said this, investors/traders must keep an eye on the MACD lines. A con­vinc­ing bear­ish crossover can delay the short-term recov­ery prospects. But look­ing at the bull­ish diver­gence on the OBV’s troughs, the buy­ers would like­ly aim to rebound from the imme­di­ate support.

Con­clu­sion

Giv­en the bear­ish break below the up-chan­nel along­side a close below the basis line of BB, AXS could test the $13.5 or the trend­line sup­port. Should the sell­ers dwin­dle because of the bull­ish diver­gence on the OBV, the buy­ers could aim to pro­pel a recov­ery toward the $14-$15 range.

How­ev­er, it becomes vital to note that the alt­coin shares an 88% 30-day cor­re­la­tion with Bit­coin. Thus, keep­ing an eye on Bitcoin’s move­ment would be essen­tial for mak­ing a prof­itable move.

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