Axie Infinity (AXS) At Risk of Crashing to $50 amid Bearish Conditions

  • AXS trades about 60% lower than the token’s ATH.
  • Selling momentum builds up as the volume profile thins out.
  • Continuing to form significant gaps between Tenkan-Sen and candlestick bodies might see Axie Infinity bouncing.

Axie Infinity (AXS) price movements continue to flash bearish trajectory. That comes as the overall crypto space endures losses following the 5 January crash. Furthermore, the broad crypto market downturn and profit-booking seem to pressure metaverse crypto and gaming token categories.

AXS Secures Temporary Support around $70; Failure to Keep the Level Might Trigger Deeper South Move

AXS might witness consolidation for some days before deciding its directional bias. The 2nd-largest Volume Profile’s node at $70 has formed a support barrier for the altcoin. However, no one knows whether this floor has the strength to overturn increased selling pressure.

The gaps between Tenkan-Sen and daily candle bodies might temporarily prevent Axie Infinity from deeper downside retracements. However, that might be a brief pause before the alt continues the downtrends. Meanwhile, the Volume Profile thins in the $65 – $50 range, and experts expect AXS to secure its following governing support at this value area.

The price level at $50 remains vital for various reasons. First and foremost, it is Axie Infinity’s psychological point. Second, there’s a high volume node in the $45 – $50 area. Moreover, the nearest FIB retracement of 38.2% stands at around $46. Lastly, AXR price plunge beneath $65 and $50 should stop further strength by bears.

AXS bulls have to step up for a close past the daily Kijun-Sen near $95 to cancel the current bearish outlook. Nevertheless, the altcoin’s upcoming price directions might rely on the broad market sentiment. For now, assets in the crypto spectrum battle bearishness.

The leading digital token, Bitcoin, fails to launch steady recoveries after the recent slump. While publishing this blog, BTC exchanged hands at $41,859. The crypto requires an upside move towards $45K – $50K to invalidate bearishness in the near term. Such developments would mean bullish waves in the altcoin market. Meanwhile, keeping the current downward mode will see crypto tokens losing their vital price zones.

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