- Axie Infinity is taking advantage of the positive sentiment of the cryptocurrency market.
- Some short-term profit-taking should not worry investors as the fundamentals remain strong.
- The repeat of the pattern could take AXS towards $100.
Axie Infinity has seen a steady rise from $14.05 on July 21 to $82.93 yesterday. During the climb, AXS showed two consecutive repeats of the same trading pattern. Each time – on July 23 and August 10 – the price of Axie Infinity produced a large green candle with a thick body. Afterwards, the price consolidated and buyers took short-term profits over the next two or three days. An ascending flat is created as a reference point for buyers to add long positions. At the end of the cycle, the price resumes its uptrend, repeating a large green candlestick with a thick body.
Axie Infinity Fractal Price Could Hit $100
Short selling is not a problem for the trade as there are still plenty of support levels in place. The green uptrend line from July 21 is still intact and has only seen one retest, which shows its importance as that test was the prelude to the next uptrend.
The Fibonacci retracement matches our analysis of the pattern. In the first pattern (lower yellow rectangle), the price ranged between four Fibo levels before breaking out of the Fibo level of $56.64. The figure shows a similar move between the Fibo levels of $56.64 and $82.93 in the current yellow rectangle. The inclined ascending plane is also forming, suggesting further upside potential.
AXS/USD daily chart
If the short-term uptrend line is broken, even then, buyers would still be interested in finding entries for a long AXS position. There is the green ascending trend line that was hardly tested before, but it is of great importance. The Fibo level of $56.64 should serve as support, and this level has yet to be retested since the breakout to the upside on August 10th.
If market sentiment deteriorates and cryptocurrency positions are wiped out, expect a break of the green trend line to look for support around $50 which will be there as psychological support. AXS has the 55-day simple moving average (SMA) around $30 and the Fibo level at $28.83 as additional underlying support.