Axie Infinity Analysis: AXS Defies Candlestick Pattern With a 5% Increase. Is There More?

Axie Infinity is gradually defying several bearish predictions. A look at the daily chart showed one such incident. During the previous intraday session, the coin dipped to a low of $6.73. This happened after it opened at $6.9.

It rebound at the low and closed at $6.84. The losses are what many will consider insignificant as it was less than 2%. Nonetheless, this movement gave birth to a hammer candlestick. This pattern appears at the end of a bullish trend.

We also noticed that Tuesday was a green day for the coin as it gained more than 5%. Yesterday’s candle meant that we should expect more price decreases afterward. Did it happen?

Axie Infinity is Up by 5%

AXS opened the current intraday session at $6.83 and met strong buys after the open. As a result, it broke several levels. One such is the $7 resistance. After flipping this key mark, it peaked at $7.23.

Currently exchanging at the said mark, the coin is up by more than 5%. Many traders are thrilled by the increase, as this was against the previous candlestick pattern. The question on everyone’s mind is whether the increases will continue.

It is important to know what caused the surge before concluding of if it will continue to pump or not. With regards to fundamentals, there are no big positive ones. A look at the chart also gives little insight into the cause.

With little information on what triggered the push, we may conclude that it was a coordinated pump. Will it continue? Most uptrends based on fundamentals or recovery from a massive last for days.

Based on previous increases, we may expect either of these scenarios to play out. AXS may close the current intraday session with gains of less than 5%. This may lead to more improvement over the next 48 hours.

However, a close with more than 10% positive change may result in notable decreases over the next 48 hours. With this in mind, let’s go over the key levels to watch.

Key Levels to Watch

Vital Support: $7, $6.5, $6

Vital Resistance: $7.5, $8, $9

With so much uncertainty in price, we may anticipate attempts at key support or resistance. The first negative barrier on the list is $7.5. Since losing the mark a few days back, the coin failed to reclaim it.

If the surge continues, we may see the coin attempt to retest this mark. A successful flip of this mark may open the $8 resistance. It lost it last week Tuesday and has made no attempts at reclaiming.

The toughest on the list is $9. The last time we observed a retest of this vital level was earlier this month when it had one of its biggest surges. It may take such a push to see it break. On the other hand, further downtrend may set AXS to retest key support.

The first mark to watch is the $7 support. Currently trading above it, we may a retest within the next 24 hours. A flip will guarantee a retest of the $6.5 barrier. The last support on the list is the $6 mark.