Oversold RSI Rebounds AXS Price From $27 Support

The Axie Infinity(AXS) price retests the $27 support twice within a fortnight. Moreover, an evident bullish divergence in the daily-RSI indicates the buying pressure at $27, encouraging the formation of a double bottom pattern. The bullish pattern should push the coin price above $35

Key points: 

• The AXS price forms a double bottom pattern in the daily time frame chart
• The $27 fallout would invalidate the bullish thesis
• The intraday trading volume in AXS price is $454.1 Million, indicating a 114% gain.

Source- Tradingview

Following the January sell-off, Axie Infinity(AXS) price consolidated in a range-bound rally for the next three months. This range stretched from $44.5 to $72, reflecting a 60% gap from bottom to top.

However, amid the recent sell-off in the crypto market, the sellers poked the bottom support level on April 25th. The freefall devalued the AXS price by 35.6% and slumped the altcoin to $27 support.

On May 5th, the AXS price went through a failed attempt to surpass the $35 resistance and plunged back to the $27 mark. However, a second bounce back from this support suggests the traders are quite interested in this dip.

The expected reversal would form a double bottom pattern and rechallenge the $35. A bullish breakout from this resistance would pump the AXS price 25% high to the $45 mark.

However, the $45 resistance is an important barrier for sellers, which simultaneously holds the key to a bullish recovery.

The Technical indicator

The daily-RSI slope escaped from the oversold territory and reclaimed the 14-SMA line. The long stretched bullish divergence bolsters the reversal theory from $27 support.

However, the trades should look after the 20-and-50-day EMA, aligned with $35 and $45 resistance, respectively. These EMAs strengthen the sellers’ defense and could interfere with the potential rally.

• Resistance levels- $2.65 and $3.3
• Support levels- $27 and $20

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.