The price of Axie Infinity takes a nosedive; AXS bulls target $60 if support holds
- Axie Infinity price hits a previously identified target zone earlier in the week.
- The bears are carrying the selling pressure past the $45 support zone.
- Failure to hold support at $45 could trigger a flash crash towards $31.
Axie Infinity price faced two scenarios at the start of the trading week: a rebound and a retest of $90 or a drop towards $31. As the AXS moves into the weekend, the bears appear to have taken control and pushed Axie Infinity towards new 2022 lows.
Axie Infinity must hold $45, otherwise it will slide to $31
Axie Infinity price broke through the shared support zone at $45 of the 38.2% Fibonacci retracement and the weekly Ichimoku cloud top. Unless the bulls come to support the AXS, the bears have an easy path to drop Axie Infinity over 33% to the 50% Fibonacci retracement at $31.
And maybe that’s the movement that needs to happen. Axie Infinity remains one of the only primary metaverse/gaming token class cryptocurrencies that has not had a 50% logarithmic retracement from its all-time high to the low of the monthly strong bar.
However, further bearish price action will likely become increasingly difficult to achieve. Indeed, there are still significant gaps between the Tenkan-Sen and the bodies of the daily candlesticks. Within the Ichimoku Kinko Hyo system, the Tenkan-Sen does not tolerate large gaps between itself and the candlestick bodies. When gaps appear, they often disappear immediately, but usually no more than four to six periods. A mid-reversion setup becomes more likely as the lower AXS goes.
Ichimoku Kinko Hyo AXS/USDT Daily Chart
Additionally, the Axie Infinity oscillators continue to find themselves in oversold conditions, giving more weight to the likelihood of a bullish mean reversal very soon. The bulls will need to close Axiey Infinity price at $46 or above to limit how far the bears can push AXS. If the bears close the AXS below the 38.2% Fibonacci retracement, then a quick push south towards $31 is highly likely.