Axie Infinity (AXS) nears oversold situations that suggest a trend reversal in bulls’ favor. Moreover, the alt’s price action formed a bullish technical pattern that supports AXS’s optimistic picture. For now, Axie Infinity seems ready for a massive upward move.
AXS Ready for Swift Upswing
Axie Infinity gained about 62% between January 24 and February 7, forming a range that stretches between $44.27 and $72.10. The barriers acted as boundaries that AXS bears and bulls respected.
Meanwhile, range-bound price moves often witness the token sweeping one boundary and moving to the opposite limit. AXS swept the range low on February 24 before triggering a swift recovery, accompanied by an 80% surge that deviated beyond $72.10 to print the $75.45 swing high.
A corrective wave followed the massive upsurge by Axie Infinity, undoing gains since February 24. AXS also plunged lower than the past $41.79 swing low. The prevailing 24hr candle formed a makeshift swing low around $39.40.
The alt can overrun this area amid increased selling pressure. Presuming the price respects this zone, patient market players can wait for recovery beyond the $44.27 range lows to execute long positions.
Surprisingly, AXS price formed a lower low on January 29 and April 26, whereas the Relative Strength Index printed a higher high, unveiling a bullish divergence.
This technical setup shows momentum rising as Axie Infinity price produces a lower low. The development often translates to an upsurge in the underlying asset’s market value.
A massive recovery past $44.17 will mean a buy sign that may trigger a 40% surge towards the range’s midpoint near $58.18. some cases would lead to a 75% uptick towards the $72.19 high from the current price of $41.29.
The exchange supply metric determines tokens held on a centralized exchange. A surge in coins on such a platform means investors could be reading to take profits. On the other side, a decline shows market players are confident and might hold for the long term.
Axie Infinity has had this on-chain metric on downtrends since October 27, 2021, plummeting to 2.1 million from 6.61 million. The 4.06 million drop shows investors growing massive bullish on AXS price performance.