Short-term buying opportunity for AXS

For the past few days, Bitcoin rallied from $34,800 to test the $39,000 resistance and actually broke it on Feb 14. This creates a market-wide short-term buying opportunity as traders try to snag altcoins that have seen some gains.

One of them is Axie Infinity’s AXS token, which has crossed the demand zone after shifting south.

1 hour chart

AXS/USDT | Source: TradingView

Earlier this week, analysts noted that the price could return to $38, but AXS bulls halted the downside at $42. Since then, the $44-48 demand area has turned back into support and the price has also surpassed $46. This process closely follows Bitcoin’s $34,800 rally and shows exactly why BTC is being hailed as king.

In the last 36 hours, the price formed a rising wedge (yellow). This usually signals a possible drop, but in this context, the drop might not be much more than a pullback.

For this reason

A drop below $44.5 did not result in a sharp drop. Instead, the price appears to have fallen on shorter timeframes to attract short positions before bouncing back above $44.5 and $46. This forced short positions to close, sending AXS higher to $50.

Therefore, smart players, having sought liquidity below $45, are now likely to push AXS towards the next significant liquidity bands. These are the $55.5 and $63.25 levels.

AXS/USDT | Source: TradingView

The RSI and Awesome Oscillator had a strong bearish momentum for the past few days but then bounced back into the bullish zone.

OBV is showing a recovery from $45 supported by real demand and OBV has moved north strongly. A level has been marked on OBV and if buying volume can surge above this level in the next few hours, it will propel AXS to $55.5 and $63 in the next few days.

Conclude

A lot depends on the price development of Bitcoin in the next few days. Global markets slowly recovered somewhat yesterday, but the end of the weekend and Monday could change the story significantly. Therefore, while AXS offers a buying opportunity between $46 and $49, caution should be exercised on this trend.

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