Axelar crypto pumped by 43% in October – Time for a cool-off now? 

• AXL’s recovery hit over 40% in October 
• However, the altcoin still faces short-term headwinds amid reduced market interest

Axelar [AXL], a protocol that offers cross-chain communication like Chainlink [LINK], surged by over 40% during October amid a broader market rebound.  

The aforementioned recovery pushed AXL to a multi-month high and a previous Q2 support below the $1. Hence, the question – Can AXL move forward now? 

AXL’s uptrend status

Source: AXL/USDT, TradingView

Since late September, AXL has been making higher highs and lowers – A bullish market structure perfect for long positions as the price surged. 

However, at press time, AXL faced price rejection at the Q2 support-cum-resistance level of $0.88.

With technicals flashing overheated signals, a strong extended recovery might be delayed. Especially if Bitcoin fails to crack $70k mark in the short term. 

That being said, AXL might extend its correction to 38.2% Fib level before gaining momentum to crack the Q2 support. If so, the level could offer a discounted re-entry point. 

However, a firm reclaim of the Q2 support could increase the odds of it hitting $1.29 on the charts. The immediate bullish target of $1.12 would offer extra 20% potential gains if hit. 

Whales reduce exposure

Source: Hyblock

Another data point that suggested low odds of AXL clearing the overhead roadblock was declining whale interest.

Whales have trimmed their long positions since mid-October. This might explain the range formation seen afterwards. The declining Whale vs. Retail Delta showed this too. 

However, a reversal on the metric could increase the chances of AXL cracking its former Q2 support-turned-resistance level. 

Read Aexlar [AXL] Price Prediction 2024-2025

Additionally, the declining Open Interest (OI) rates also painted a short-term headwind for AXL. 

In mid-October, the OI stood at nearly $20 million. However, it had fallen by half to $10 million at press time.

This highlighted reduced market interest by nearly 50% for the altcoin. Worth noting though that this could change if BTC reverses its recent losses and surges above $70k. 

Source: Coinglass

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion