Disclaimer: The information presented does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.
- The inefficiency of $9.7 has not been fully bridged.
- A move above $12.3 could trigger the next leg of upside for AXS.
Axie Infinity has fallen from $14 in the past two weeks. A series of lower highs and lower lows during this time period is indicative of a bearish market structure. Therefore, buyers may wait for a break above $12.3 before looking to buy.
Read the Axie Infinity 2023-24 price prediction
Axie Infinity has a glitch in the price charts ranging from $9.7 to $12.2, but much of that area has been filled. Aggressive traders may wait for a move towards $12-$12.3 before looking to sell.
In general, risk averse traders can wait for Monday’s open and close before entering into trades.
The 61.8% level saw a bullish reaction but a bearish order block blocked the way
Based on the upward move from $7.71 to $13.94, a set of Fibonacci retracement levels (yellow) were drawn. It showed 61.8% and 78.6% retracement levels at $10.09 and $9.04.
The $10.09 level approached and buyers forced AXS prices north again.
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On January 29, the price of Axie Infinity increased from $11.69 to $12.3. This was followed by a sharp decline to $10.6, which led to liquidity accumulating below the $11 level.
Therefore, the area of $11.7-$12.3 is said to be a bearish order block. This area must be conquered before buyers can expect another move higher.
Meanwhile, both the RSI and CMF showed neutral readings. The RSI stood at 56 to indicate a bullish presence and has been above a neutral 50 since early January.
This confirmed the notion that the long-term bias remains bullish, but forex traders may be wary of a shift in sentiment to the downside due to market structure. Caution was key, and a retest of the $12 level could be helpful.
The 90-day flat-break cycle means that the sell-off hasn’t started yet
A positive funding rate meant that the participants were optimistic. The MVRV ratio (30 days) was close to the zero line to show that short-term holders have not made a huge profit yet. The previous peak on January 22nd was followed by a massive sell-off.
My 90-day resting circulation hasn’t seen a significant increase in recent weeks. Dec 6 and Jan 29 were followed by some selling pressure, but this does not always have to be the case.