Axie Infinity (AXS) – Setting the stage for the next wave lower

Axie Infinity (AXS) – Setting the stage for the next wave lower

Posted on Monday, June 27 2022 at 9:39 pm GMT+0000

Axie Infinity (AXS) pivoted southwards after last week’s recovery attempt has been curbed by the 40-day simple moving average (SMA), and the price appears like prepping for a new bearish wave.

The falling 20- and 40-day simple moving averages are sponsoring the current negative structure. While as regards the oscillators, the RSI is fading below its equilibrium level of 50, and the Stochastic reclaimed a negative charge after deviating from the overbought territory, both promoting additional bearish price action.

A decisive close below the 20-day simple moving average will trigger a retest of the last bottom recorded on the 18th of June at 11.83. Any violation here will nourish the current structure, paving the way straight to the Fibonacci golden number at 7.70. Another step lower is expected to feed a more aggressive decline towards the 227.2% Fibonacci extension level at 3.34.

Alternatively, for the bulls to re-enter the game the price will need to overstep the 40-day simple moving average. In such a scenario, those will need to assemble a more profound upside force to tackle the latest top recorded on the 31st of May at 28.17. Triumphing over this hurdle, they could then propel the price to the 5th of May high of 35.19.

In a nutshell, Axie Infinity has been displaying a steady bearish trajectory over the last 2 months and is setting the stage for a fresh bearish wave that is expected to stretch well beneath the 7.70 support base.