Axie Infinity (AXS) joined other altcoins in the dip as it reached its lowest price last week after a four-month decline. The price remained quiet for some days and witnessed a sudden spike to a key resistance today. It rolled back after facing rejection.

Following the existing bearish scenario, which started in January, AXS recently established new support at $6.5 after breaking slightly below March’s low. The price floated above that support for days before it later picks up today with a 30% spike to test a crucial resistance line at $8.5.

Interestingly, this resistance line suppressed the sudden buying pressure with rejection and later halted the pressure. It has washed off more than half of its daily gains in the past hours.

However, the sudden spike looks more like a retest and not a bullish signal. Even though the bulls regroup in the future, they will have to push through the crucial resistance line before we can confirm a positive action.

AXS is still in a downward range. The price may even break lower in the few if the bears keep gaining control. But looking at the market structure on a daily chart, the price trades near the 2022 bottom. A bounce from this level should trigger a trend reversal.

Now that the price has rolled back from the resistance line, the $8 level remains a key breakpoint for the crypto. If that occurs, the resistance to watch above the line is $9.8 and $10.41 before it surpasses $14 in the future.

In case of a fresh dip, the support to consider for a drop is the recent low of $6.5. Below that level lies $5.8 and $5.

Key Resistance Levels: $8, $9.6, $10.41

Key Support Levels: $6.5, $5.8, $5

Image Source: ximagination/123RF // Image Effects by Colorcinch

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