Axie Infinity [AXS] Price Analysis: Will AXS be able to defend $6 yearly support ?

• Axie Infinity lost previous week gains and forming doji candle pattern indicates indecisiveness
• MACD generated a negative crossover whereas RSI at 42 reversing upwards.

Axie Infinity had been reversing upwards with mild bullish cues after taking support near the demand zone of $6.00 while the previous few sessions were dominated by bears and dragged prices down almost 15.03% on a weekly basis. As of now, The current price is trading at $6.85 with the intraday gains of 4.58% and 24 hour volume to market cap ratio stood at $0.1223

Will AXS be able to reclaim 50 day ema ?

On a higher time frame Axie Infinity has been a volatile token forming lower lows swings while facing resistance at falling trendline. In the past couple of months AXS had been trading sideways in the wide range between $11.62 to $20.01, Later in mid of October bulls failed to defend the lower range and prices slipped below $11 support level and hit a fresh low at $5.92. After a little bit of consolidation, recently bulls attempted to breakout 50 day ema (pink) but got rejected from resistance levels indicating sellers are active on higher levels.

The 200 day ema (green) sloping down indicates trend to remain weak on positional basis while the 50 day ema (pink) will act as an immediate hurdle for bulls in coming days followed by next hurdles will be at $9.09 and 11.62  The MACD have been little stable and shown some positive momentum in past couple of days but recently MACD had also generated negative crossover which indicates price may react mild bearish in coming sessions whereas RSI is 42 reversing upwards indicates some relief rally is possible in coming weeks.

Are any signs of Trend reversal visible or not ?

On a lower time frame, Axie Infinity prices are in the downtrend and bears are dominating on higher levels. In the initial phase of december, Bulls had shown some aggressive buying along with a higher volume which gained confidence of bullish traders but it faced resistance on trendline and slowly and steadily lost its previous gains. The supertrend had also generated a sell signal indicating a short term trend to remain weak but if bulls succeed to trade above $8 we may see some short term bullish trend reversal. On a lower side $5.92 will act as a savior for bulls but if price breakdown $5.92 bears may drag the price further down towards $5 and below.

Summary

Axie Infinity bulls have struggled a lot to defend the recent lows while the bears are also waiting for an opportunity to sell on higher levels. So, as per technical analysis, prices do not show any signs of trend reversal and it is expected to trade sideways with the bearish bias. As of now, prices may see some relief rally from $6.50 level but aggressive traders should grab the opportunity to sell on rise keeping $11 as SL

Technical levels

Resistance levels : $9.09 and $11.62

Support levels : $5.92 and $5.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Source: https://www.thecoinrepublic.com/2022/12/20/axie-infinity-axs-price-analysis-will-axs-be-able-to-defend-6-yearly-support/