• Axie Infinity has its price flipping the demand zone in the $58.22 – $69.22 range into a breaker after shattering the value area.
  • Market players may await a 25% drop once AXS retests the demand region’s bottom limit at $58.22.
  • A significant-close beyond the barrier at $69.22 will annul AXS’s bearish thesis.

Axie Infinity (AXS) plunged under a critical support zone, switching it to a resistance level. That way, any slight upsurge will likely encounter rejection from the barrier, translating to a swift correction. Furthermore, the dominant bearishness in the crypto world supports Axie Infinity’s pessimistic outlook.

AXS at Inflection Point

Axie Infinity price formed a double bottom near $48.06 after a nearly 37% drop with the previous four days. The downswing plus bottom reversal setup left some sell-side liquidity beneath the $48.06 value area.

Nevertheless, Axie Infinity has a probability of kick-starting a 15% upward move towards the flipped demand region, stretching between $58.22 and $69.22. Retesting this breaker might lead to a massive rejection, offering investors a chance to enter short positions.

The downswing might breach the support level at $48.06 and gather liquidity beneath the zone. Also, the altcoin might plunge further to the weekly barrier at 437.66, the level where market players may take profits. That would translate to a 25% drop from the $58.22 retest.

A significant surge through the breaker at $58.22 – $69.22 might see AXS forming a daily candle close beyond the level. Such a trend would invalidate bearishness in Axie Infinity. With that, the crypto might print a base near the barrier at $70, preparing for an upward move.

A possible surge in buying momentum at this value area might witness AXS retesting the $88 mark. Remember, the 20-day Simple Moving Average and 50-day SMA cross at this zone.

Nevertheless, the global market shows bearish dominating. The global market capitalization hovers at $1.52 trillion following an 8.54% fall within 24 hours. Moreover, Bitcoin displays further weakness, plunging to levels of $33,878.6 at this publication. Such scenarios support more drops in AXS.

Feel free to share this article.

Editorial credit: TongRoRo / shutterstock.com