Axie Infinity (AXS) – Resilient inside a descending regression channelPosted on Sunday, February 27 2022 at 9:21 pm GMT+0000
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 7th 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 25th inside swing low at 46.30 will lead the way towards the return line of the channel and the nearby February 24th 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 16th 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.