Axie Infinity forms a bullish flag; sellers can benefit at this level

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

• The flag sample, though bullish, was not best
• AXS noticed some developments within the futures market which indicated speculators had a extra bearish stance

The crypto markets noticed a pointy bullish transfer over the previous two days. Bitcoin led the cost and posted positive factors of 8% from the $19.3k assist zone.

The bullish sentiment behind Bitcoin translated throughout the altcoin market. Axie Infinity posted positive factors of practically 14% in the identical interval.

Right here’s AMBCrypto’s Value Prediction for Axie Infinity [AXS] in 2022-23

Axie Infinity had been in a powerful bearish pattern beforehand. Even now, its greater timeframe bias leaned in favor of the bears. Within the subsequent few days, the $10.1 resistance zone could possibly be a hotly contested area on the charts.

Bullish flag noticed, however the 38.2% stage has different concepts

Supply: AXS/USDT on TradingView

Axie Infinity dropped from $11.28 to $8.18 the earlier week. Based mostly on this transfer, a set of Fibonacci retracement ranges (yellow) was plotted. The 38.2% retracement stage was at $9.36, and this stage has not been damaged but.

Highlighted in white and blue was a bullish flag, however the formation itself was not best. In comparison with the flagpole, the flag itself has lasted a good whereas on the decrease timeframes. A breakout above the flag will doubtless see AXS climb to $10.2-$10.4.

In the meantime, the $10.14 was a big horizontal stage. It was additionally within the neighborhood of the 61.8% retracement stage at $10.1. Due to this fact, it was doubtless that Axie Infinity will face heavy promoting stress on this space.

The RSI on the 2-hour chart was above 60 and confirmed robust bullish momentum. Over the previous couple of days, the OBV additionally registered greater lows. This meant that purchasing quantity was stronger on this interval.

OI tails off after the pump of the $9.4

Supply: Coinglass

Whereas the OBV climbed greater to point out elevated shopping for stress, the Open Curiosity really noticed a dip prior to now two days. This discovering urged that the value transfer greater noticed quick positions lined and may not be pushed by basic demand.

Think about the truth that AXS has been in a better timeframe downtrend since mid-August. The dearth of an accumulation part earlier than a bullish transfer indicated that this pattern has doubtless not shifted.

The funding rate remained bearish to point that futures market individuals continued to have a bearish outlook available on the market. If AXS manages to see one other leg upward, this might power these quick positions to shut and gasoline the bullish momentum behind Axie Infinity.