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

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

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 18^th 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 31^st of May at 28.17. Triumphing over this hurdle, they could then propel the price to the 5^th 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.