The price of Axie Infinity (AXS) surged to $7.51 today, marking its highest point since June 5, before experiencing a slight dip. Amid this climb, the price successfully surpassed a crucial horizontal resistance level. The question now is whether this upward momentum can be sustained, propelling the price towards the $10 mark.
Axie Infinity Hits a 175-Day Peak
Examining the daily timeframe’s technical analysis reveals a rapid increase in the AXS price since it broke free from a descending resistance trend line on October 21. Initially met with resistance at a pivotal horizontal level that had held since June (depicted by the red icon), AXS quickly regained ground and achieved a breakthrough today, reaching $7.51 before a minor decline.
Axie Infinity (AXS) Price Trends
Market participants commonly rely on the Relative Strength Index (RSI) as a momentum indicator to discern overbought or oversold conditions, guiding decisions on asset accumulation or sale.
An RSI above 50 in an upward trend signals bullish strength, while readings below 50 indicate the opposite. Currently, the RSI stands above 50 and is on an upward trajectory. Moreover, it has exhibited a hidden bullish divergence (highlighted in green), suggesting a continuation of the prevailing trend.
What Fueled the AXS Price Surge?
Recent positive announcements from the Sky Mavis team have contributed to AXS’s rally. Notably, the revival of the original Axie Classic game attracted a swift influx of players, with weekly users reaching 100,000 within four days.
Additionally, the team launched the Axie Infinity Merch Store, further boosting investor sentiment. Cryptocurrency trader and analyst Quang Avenue expressed optimism, highlighting a bullish inverse head and shoulders (H&S) pattern, foreseeing a potential price surge to $12 upon its breakout.
AXS Price Outlook: Can $10 be Achieved?
Technical analysts employ the Elliott Wave theory to identify recurring long-term price patterns and investor psychology, aiding in trend direction determination. The prevailing wave count suggests AXS is in the third wave of a five-wave upward movement (depicted in black), often the most pronounced and prolonged of bullish waves.
If wave five extends 1.61 times the length of wave one, AXS could reach $9.60 before a correction, aligning with the $9.50 horizontal resistance and marking a 35% increase from the current price. Subsequently, the fifth and final wave might propel the price well beyond $10.
AXS Price Projection
Despite this optimistic forecast, a breach below the $6.70 horizontal level would invalidate the breakout. In such a scenario, AXS might experience a 25% decline to the nearest support at $5.50.
Metric | Value |
---|---|
Current AXS Price | $7.51 |
Highest Price Since June 5 | $7.51 |
Resistance Level (June) | $6.70 |
Projected Price (Bullish Scenario) | $10.00 |
Projected Price (Inverse H&S) | $12.00 |
Weekly Users (Axie Classic) | 100,000 |
Relative Strength Index (RSI) | Above 50, Increasing |
Elliott Wave Analysis (Wave 5) | Potential high of $9.60 (35% increase) |
Potential Support Level | $5.50 |
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