2022-12-6 17:00 |
The Axie Infinity (AXS) price increased considerably on Dec. 5. It is approaching a descending resistance line, a breakout from which could greatly accelerate the rate of increase.
AXS is the native token of Axie Infinity, a play-to-earn blockchain game built by Sky Mavis. The AXS token is used to breed items and can be swapped in order to buy game items. The AXS price has fallen inside a long-term descending parallel channel since reaching an all-time high of $166.09 in Nov. 2021.
Such channels usually contain corrective movements, meaning that an eventual breakout from it would be expected.
The AXS price fell to a low of $3.99 in the beginning of Nov. However, it bounced sharply, creating a very long lower wick that validated the support line of the channel. Such long wicks are considered signs of buying pressure.
Now, the Axie Infinity price is facing resistance at $9.50, created by the middle of the channel and previous resistance area.
If the AXS price is successful in moving above it, an eventual breakout from the channel would be likely. If not, the AXS price could fall to the support line of the channel once more.
AXS/USDT Weekly Chart. Source: TradingView Axie Infinity Price Prediction: Beginning of Upward Movement?The daily chart shows that the AXS price has followed a descending resistance line since the beginning of May. More recently, the line caused a rejection on Nov. 13.
However, the daily RSI has generated bullish divergence since, a sign that often precedes upward movements. This led to the 25% increase over the past 24 hours, which caused the RSI to move above 50. This is considered a sign of a bullish trend.
If the Axie Infinity price breaks out from the resistance line, it could increase toward the next resistance at $13.
If this occurs, it will also cause a breakout from the aforementioned long-term channel. As a result, it could catalyze a longer-term upward movement.
AXS/USDT Daily Chart. Source: TradingViewFor BeInCrypto’s latest crypto market analysis, click here.
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The post What’s Behind the 25% Axie Infinity (AXS) Price Jump? appeared first on BeInCrypto.
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