Axie Inifnity [AXS] gearing up for a rally but do its buyers have enough strength

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.

The crypto market has been in a robust downtrend over the previous week but noticed a sizeable bounce prior to now few hours of buying and selling. Bitcoin led the cost and noticed a short-term rally from $20.5k to $22.8k. This 10% transfer upward spurred many altcoins to additionally have a bullish break. Axie Infinity additionally posted respectable positive aspects from the $12.6 lows of the day gone by to achieve resistance at $16.2. Can the buyers keep this stress, or was it a pullback earlier than one other push decrease?

AXS- 1 Hour Chart

The hourly worth chart confirmed a downtrend for AXS prior to now few days, characterised by a sequence of decrease highs and decrease lows. Two of the newest decrease highs are at $15.41 and $16.17 (white). Moreover, the $15.4 space (cyan field) represents an space of provide that would have been flipped to demand prior to now few hours of buying and selling.

The rally from $13 to $16.2 broke above this provide zone and threatened to flip the market construction to bullish. A bullish bias can be warranted if the buyers can defend the $14.95 mark and pressure AXS again above the $16.17 mark.

The Fibonacci retracement ranges (pale yellow) plotted confirmed the 38.2% retracement stage at $16.24, including confluence to this space of resistance.

Rationale

Source: AXS/USDT on TradingView

The RSI crept above the impartial 50 line the day gone by. Recent buying and selling hours pressured one other surge larger to 70 to indicate short-term momentum to be strongly bullish. The OBV additionally noticed a spike upward to point important shopping for quantity behind the AXS rally.

The DMI confirmed a short-term uptrend to be in progress. Both the ADX (yellow) and the +DI (inexperienced) had been above the 20 stage.

Conclusion

The indicators confirmed bullishness behind AXS, but the value motion remained inconclusive. A transfer previous $16.24 might see Axie Infinity climb towards the $19 mark. Meanwhile, a transfer under $14.95 would point out that the rally had ended.