Finding the next shorting opportunity in Axie Infinity [AXS]

AXS, Axie Infinity's native token, has had a terrible week on the market. Even still, the market is ruled by fear, and Bitcoin's fall didn't help the token.

 Bullish breakout attempts in early February were decisively denied at a band of resistance.

AXS- 1 hour chart

After the price stalled in the $44-$48 range in late January, the $55.56 level (white) was recorded as a new low. An earlier short-term upswing failed to hold, and the $70-level proved too much for bulls. While the price stayed over $63.25 for a few days, it eventually went below it.

axs 1 hour chart
AXS/USDT chart 1H Source:Trading View

A few days ago, the price retested the $55.5 level from the lower end. After a negative retest, this level was confirmed as a short-term resistance level, and the price was once again trading in the $44-$48 range.

Demand in this region is critical, although the likelihood is low. After a long day of fighting, the bulls may be worn out. If the market's selling pressure doesn't subside, AXS is expected to fall to $38 in the next days.

Rationale

For about two weeks now, the MACD has been trading below zero. Bulls sought to change the trend in their favor in mid-February but were unsuccessful after the early February breakout failed. The MACD was below 0 when this article was written.

axs-usdt macd
AXS/USDT Source:Trading View

The Directional Movement Index indicated that the recent decline had become more pronounced. Even more so as the ADX (yellow) and -DI (red) rose in the same direction, respectively.

Conclusion

On the lower periods, there is no buying opportunity. While the $44-$48 level may witness a rebound, the market's anxiety and uncertainty over Bitcoin might lead to more losses for AXS. Axie's price was on the decline at the time of publication. This hinted that a shorting opportunity at $50 might occur.

Disclaimer: The following analyses' findings are the writer's own thoughts and should not be construed as investment advice.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

Follow us on Google News

Filed under

Recent Search