2022-12-20 19:00 |
While the Axie Infinity (AXS) price has generated bullish divergence, it has yet to confirm it by breaking out from a descending resistance line. Doing so could catalyze an upward movement.
AXS is the native token of Axie Infinity, a play-to-earn game built on the Ethereum blockchain by Sky Mavis. The AXS token is used to breed items and can be swapped in order to buy game items.
Besides the Axie Infinity game, the builder’s program, a community-driven project supported by Sky Mavis, will launch various new games in the Axie ecosystem in the future. Axie Doll, the first builders program game was released on Dec. 16.
Axie Doll is a survival/action game which will be playable by the same digital pets as the original Axie Infinity game. Furthermore, it will act as a burning mechanism for Small Love Potion (SLP), the in-game utility token.
Axie Infinity Price Falls Under ResistanceThe technical analysis from the daily time frame shows that the AXS price has fallen underneath a descending resistance line since the beginning of May. The line has caused five rejections so far (red icons), the most recent on Dec. 5. Afterward, the Axie Infinity price fell by 37%.
Despite the rejection, there is an interesting bullish sign from the daily RSI. The indicator generated bullish divergence in Oct.-Nov. (green line), and the trend line of the divergence is still intact.
As long as it remains so, the possibility of a breakout is still valid. If one occurs, there would be resistance at $12.50. If, however, the trend line breaks, the most likely scenario would be a fall toward a new yearly low.
AXS/USDT Daily Chart. Source: TradingView Short-Term Breakdown Could Precede FallWhile there is ambiguity as to the direction of the trend in the daily time frame, the six-hour chart is bearish. It shows that the price of Axie broke down from an ascending support line. Over the past 24 hours, it has been in the process of validating it as resistance (red icon).
As a result of the breakdown, the most likely price scenario is the continuation of the downward movement toward $5.75 and potentially $4.50. This would invalidate the bullish divergence in the daily time frame.
If the Axie Infinity price reclaims the ascending support line, it would invalidate the bearish projection.
To conclude, there is uncertainty as to what the direction of the AXS price trend is. Whether the AXS price reclaims the ascending support line or gets rejected from it could go a long way in determining the future trend.
AXS/USDT Six-Hour Chart. Source: TradingViewFor BeInCrypto’s latest crypto market analysis, click here
The post Can the Launch of a New Survival Game Rescue Axie Infinity (AXS) Price? appeared first on BeInCrypto.
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