After an exponential run-up, the AXS price appears to be taking a break and hints at a correction.
Axie Infinity announced an e-sports grant with a prize fund of 5,000 AXS.
The optimistic view will be invalidated if the stock retests the all-time high of $29.09 or moves higher.
After a tremendous rally, the price of Axie Infinity has entered a correction phase. The trading range’s midpoint could operate as a footing, halting or even reversing the downswing.
During the current bitcoin market downturn, Axie Infinity, a blockchain-based trading and breeding game, has gained a lot of traction. The AXS token’s 800+ percent ascent over the last 24 days has added a tailwind to this newfound prominence.
Sky Mavis’ developers have established a dedicated server for competitive gameplay in order to capitalize on the current wave of excitement. The business has also put aside 5,000 AXS tokens as a prize pool for the victors, which is now worth $109,000.
Between July 15 and July 29, Axie Infinity will begin accepting applications from community tournament organizers. The release mentions the game’s exponential growth, saying, “This phenomenal growth has posed some new hurdles when it comes to expanding our game servers.” As a result, the challenge server, which is normally used for scrimmages and tournament matches, has gone down.
While this move by the developers may help to enhance community involvement, technicals are pointing to a correction.
Between June 21 and July 16, the price of AXS increased by 811 percent, reaching a new all-time high of $29.09. On July 15, however, the Momentum Reversal Indicator (MRI) displayed a red ‘two’ candlestick. This setup predicts a one-to-four candlestick correction, which has already occurred as the price of Axie Infinity has plunged 26% from its high.
If the selling pressure persists, AXS will most certainly drop another 27% until it reaches the 50% Fibonacci retracement line at $15.98. Bulls have a chance to defend this level against sellers and, if possible, kick-start a bullish rise.
If this fails, a retest of the 62 percent Fibonacci retracement level at $12.84 is possible. However, in a bearish scenario, the price of Axie Infinity may reach $10.61.
1-day chart of AXS/USDT
While the downturn appears to be feasible, a prospective surge in buying pressure that recovers the current slump will raise the prospects of a turnaround.
The resurrection of purchasers will be signaled if the bullish momentum is strong enough to bring Axie Infinity price back to the all-time high of $29.09. This might be accompanied by a spike in purchasing pressure that breaks through the peak, invalidating the bullish argument./n
