Price Analysis

Axie Infinity (AXS) Price Drops Hard After Surging Nearly 50%, Is ‘V-shape’ Recovery Imminent?

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Jun 1, 2022

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The popular play-to-earn token Axie Infinity (AXS) dropped heavily after a magnificent rally of close to $30 during the last trading day. The asset reached a three-week high but eventually failed to hold the gains and corrected by more than 18.5% since the early trading hours. Moreover, it is currently posing more possibility of a larger downside incoming very soon. 

The AXS price plunge is said to be fueled by the BTC price drop from around $32,200 to the current consolidation zone of around $31,500. In a larger time frame, the asset is appearing to be pretty bullish as it just has broken the falling wedge and raised a little high. 

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The price recently broke out from the falling wedge which is a notable bullish pattern and hence is subjected to a retest. The retest may drag the price towards the same support levels before resuming with a significant upswing ahead. The short-term price action also showcases a similar upward trajectory with supporting indicators. 

axsprice2

As seen in the above chart, the price after a significant correction has just flipped from the lows and appears to be preparing for a ‘V-shape’ recovery. The RSI is displaying a bullish divergence, while MACD may flash a buy signal any time from now. Therefore, the upward trajectory may remain intact unless the price regains the lost levels. With a breakout, the Axie Infinity (AXS) price may range towards the immediate target of above $30 initially. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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