Axie infinity (AXS) – In the process of completing a double bottom formation
Posted on Monday, June 20 2022 at 9:12 pm GMT+0000
Axie infinity (AXS) has been on the rise during the last couple of sessions, jumping over the 20- and 40-period simple moving averages and is in the process of completing a double bottom formation.
The double bottom is a bullish reversal pattern that occurs at the bottom of a downtrend and signals that the sellers, who were in control of the price action so far, are losing power and a change in the trend direction should be in play.
Indicators are supporting that bullish scenario. The negative slope of the 20- and 40- period simple moving averages eased. The TSI is climbing above its signal line and just entered the positive territory while the IMI is looking north below its overbought area, not showing any signs of weakness.
If buyers manage to create additional traction and with certainty spur a sustainable move beyond the pattern Neckline at 16.33, they will certainly claim control of the reins. Such a move, if accompanied by a remarkable increase in trading volume, will upgrade the short-term picture to positive and trigger a strong rally that will likely slice through the May 29th bottom at 17.61 and stretch towards the 3rd of June low at 19.39 then the target of the bullish pattern at 20.70.
If positive forces start to wane, and the price slips back below the moving averages, attention will shift back towards the base of the double bottom formation around 12.19-11.83, where any violation will confirm the resumption of the broader bearish outlook.
To summarize, Axie infinity bulls are pushing for a decisive move above 16.33 to claim governance of the stage. If their efforts prove successful, they will be encouraged to pursue the 20.70 level.
