Axie Infinity (AXS) has been down since hitting an all-time high of $ 29.2 on July 15.

The token bounced back on July 20 and is currently moving towards the USD 23.30 resistance area.

Hit an all time high and fall

AXS has grown rapidly since June 22nd. Within 23 days, the token has grown by 921%. The upward move culminated on July 15 with an all-time high of $ 29.20.

However, since then, AXS has declined. On the same day, it hit an all-time high, creating a shooting star candle known as the bearish reversal candle, which is usually found at the top of a move.

The downtrend continued through July 20 when the price fell as low as $ 14.1. The low was hit just above the 0.618 fib retracement support at $ 13.

AXS is in the process of creating a bullish engulfing candle.

However, the technical indicators show weaknesses. While the MACD is in positive territory, it has been down for 5 days in a row. The RSI has fallen below 70 and the stochastic oscillator is on the verge of a bearish cross.

Daily AXS / USDT Chart | Source: TradingView

Short-term movement động

The shorter-term 2-hour chart shows that AXS has broken out of a descending resistance line since the all-time high on July 15th.

The breakout was supported by both the MACD and the RSI. The former is moving up and nearing zero, while the latter has moved above the 50 line.

If the uptrend continues, the next two levels of resistance will be at $ 20.7 and $ 23.5. The latter is the 0.618 fib retracement resistance.

AXS / USDT 2-hour chart | Source: TradingView

Count waves

Trader @CryptoTony_ sketched the AXS chart, suggesting that the token is currently in the fourth wave of a bullish impulse.

Source: Twitter

It looks like AXS launched a bullish impulse on May 24th. If so, it is currently in the fourth wave (orange) of a bullish impulse.

The number of partial waves is shown in black. We can see that wave three has been extended and AXS is now in Part B of the ABC correction structure (black).

Hence, AXS is expected to rise towards the 0.618 Fib resistance area at USD 23.3 before falling again and completing a corrective structure with wave four.

AXS / USDT 6-hour chart | Source: TradingView

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

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