Axie Infinity (AXS) – In the process of completing a double bottom formation

Axie Infinity (AXS) – In the process of completing a double bottom formation

Posted on Thursday, March 24 2022 at 8:37 pm GMT+0000

Axie Infinity (AXS) has been posting an aggressive rally over the past couple of days, reaching a fresh 5-week high, and is in the process of completing a double bottom formation.

The technical indicators are endorsing the increasing buying appetite in the market, as the MACD is gaining steam above its trigger and zero lines, the ROC has gone parabolic in the positive region, and the TSI crossed beyond zero for the first time since December. Noteworthy is the expansion of the Bollinger bands, which is also rising odds for further bullish developments.

However, all eyes are currently on the February 7th high at 72.02 where any significant violation will activate the double bottom pattern, most likely paving the way towards a fortified resistance section created by the 161.8% Fibonacci extension level of the February 7th – 24th down-leg at 90.62, and the December 20th inside swing low. Conquering this too, the bulls will then aim for the 227.2% Fibonacci extension level at 110.29 and the adjacent December 27th high at 113.01.

Otherwise, if upside impetus starts to diminish, initial support could arise from the mid-Bollinger band at 50.13. If buyers were unable to generate sufficient positive traction in this zone, the critical support border of 44.46 – 41.93, shaped by the January 24th and February 24th lows, may then draw traders’ attention.

Briefly, in case Axie Infinity surpasses the 72.02 barrier, it will confirm the reversal double bottom pattern, shifting the five-month bearish bias to bullish.