Axie Infinity (AXS) – Resilient inside a descending regression channel

Axie Infinity (AXS) – Resilient inside a descending regression channel

Axie Infinity’s (AXS) recent retracement from a near 6-month low of 41.93 has snagged in the vicinity of the upper-line of the regression channel pulled from the February 7^th peak.

From a technical perspective, the diving 50- and 100-period simple moving averages are defending the short-term bearish trend, while the momentum oscillators are indicating that negative momentum is picking up again. The RSI dropped back below the 50 neutral mark and the stochastics reclaimed a clear negative charge.

Intensifying bearish pressures will take the price initially towards the middle-line of the channel. A breach below that line and the February 25^th inside swing low at 46.30 will lead the way towards the return line of the channel and the nearby February 24^th bottom at 43.36. Another push lower should sink the price towards the 161.8% Fibonacci extension level of the last positive thrust at 35.23.

Alternatively, in order to underpin buyers’ confidence, the price will need to surpass the upper-line of the channel and the neighboring 100-day simple moving average currently seen around 54.84. Such a move will shift the spotlight towards the 60.00 psychological round number and the February 16^th high at 66.22.

Summarizing, AXS is exhibiting a bearish bias in the short-term picture. A dive below 46.30 could further feed negative tendencies, while a drop under the 43.36 bottom will bolster bearish concerns. For buyers to regain confidence, the price would need to lift back above the 100-period simple moving average.