The cryptocurrency market is witnessing a significant surge in the value of Axie Infinity (AXS), which has recently reached a 175-day high. The momentum began with a breakout from a descending resistance trend line on October 21, marking a notable shift in the digital asset’s trajectory. Since then, AXS has seen a rapid increase in value, with its price touching $7.51, the highest since early June.
As a result, AXS’s market capitalization and 24-hour trading volume increased by 13.47% and 548.09%, to $935,154,254 and $518,052,082, respectively. This suggests that the breakout from the descending resistance trend line has inspired confidence among traders, who forecast additional price rises soon.
AXS/USD 24-hour price chart (source: CoinStats)
Several developments have contributed to this positive trend. The resurgence of the original Axie Classic game has attracted significant attention, drawing in over 100,000 users within just four days. Additionally, introducing the Axie Infinity Merch Store has added to the positive market sentiment. Analysts and traders, buoyed by these developments, are expressing a bullish outlook on AXS’s future.
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TARGET 1: 9.8$
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— Quang Avenue (@Quang22758929) November 26, 2023
The current market analysis suggests that AXS is amid a five-wave upward trend. The third wave, which is typically the most robust, is currently in play. If the pattern holds and the fifth wave extends to 1.61 times the length of the first, AXS could see its value rise to around $9.60. This level is shy of the $9.50 horizontal resistance area, marking an increase of 35% from the current price.
Despite the optimistic forecast, there remains a note of caution. A fall below the $6.70 mark could invalidate the current bullish trend. Such a scenario could see AXS’s value decline by 25%, reaching as low as the $5.50 support level.
AXS/USD Technical Analysis
On the AXS/USD 4-hour price chart, the Moving Average Convergence Divergence (MACD) is above its signal line, indicating a bullish signal for AXS. This crossing suggests that the momentum is turning in favor of buyers, which might continue the upward trend. Furthermore, the MACD histogram suggests a rise in bullish momentum, reinforcing the expectation of price gains.
However, the stochastic RSI rating of 77.95 and movement below its signal line on the same 4-hour price chart implies that AXS is likely overbought and poised for a correction. This signal suggests that the recent price gain was perhaps too quick and that a time of consolidation or correction is likely.
AXS/USD 4-hour price chart (source: TradingView)
In conclusion, Axie Infinity’s AXS is on a remarkably bullish run, fueled by recent developments and positive market sentiment. While the potential for further gains exists, caution is advised, as overbought conditions may lead to a correction.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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