After the 17500% gain in 2021, Axie Infinity has got the hottest crypto status due to the play-to-earn concept's implementation. However, the situation changed recently when the AXSUSD price made a sharp 52% loss from its 2 April 2022 peak. The main reason behind the selling pressure is larger crypto markets’ bearishness, while the global economic condition is not the same as when the bull market started.
Another reason for the most recent impulsive selling pressure is the hack of 173,600 ETH, worth over $600 million, from Axie Inifinity’s Ronin bridge. The main aim of these bridges was to improve the performance of the Ethereum network, which came with a risk to the network’s security. Although, the founder company of Axie promised to recover and refund the stolen funds besides announcing a $150 million fundraising to cover losses. However, the theft of cryptocurrencies are events that create fear in investors' minds, which is the biggest reason for the selling pressure of a particular instrument.
Another reason that may boost the selling pressure is user acceptance. After the implementation of new changes in rewards, Axie started to lose players, where the less number of players is a sign of selling pressure for ASXUSDT.
Let’s see the Axie Infinity Price Prediction today from the Axie Infinity AXS Price forecast:
AXSUSD Awaits Further 56% Loss
AXSUSD showed an immediate rebound in the higher time frame, where the bearish rally from the all-time high of 166.09 to weekly support of 44.38 was very impulsive. As a result, based on the higher timeframe price action, the selling pressure in this pair is solid, where the primary aim of the price is to test the 14.50 key support level. In the weekly chart, the price tested the 74.87 resistance level with the confluence resistance of 20 EMA, while the RSI is bearish below the neutral 50 level.
The above technical analysis shows how the daily price tested the 44.38 support level seven times before making a new swing low below it. Moreover, the selling pressure is backed by a double top pattern at the 74.87 level that became valid after breaking the 60.00 neckline. Meanwhile, the dynamic 20 EMA is above the price and moving lower to push the price down while RSI reached the oversold 30 level.
Based on the AXS Price Prediction, bears are more likely to control the price by taking towards the 14.50 key support level in the coming days. In that case, any bullish correction towards the dynamic 20 EMA would be a bearish opportunity upon finding a bearish rejection candlestick. On the other hand, any V shape recovery or bullish exhaustion from the 14.50 support level would be a bullish opportunity in this pair.
AXSUSD Ichimoku Cloud Analysis
According to the Ichimoku Cloud analysis, AXSUSD trades within an intense selling pressure where the current market trend is bearish. The price faces a bearish momentum within the parallel channel; the future cloud is extending its bearish momentum. The existing bearish trend might rise towards the 30.00 psychological level with a potential trend trading opportunity.
This technical analysis shows the H4 chart of AXSUSD, where the current price is trading below the 37.10 near-term resistance level. In this indicator window, the Traders Dynamic Index shows bulls/bears' dominance in the price. The TDI line reached the lower band before remaining steady below the 50 neutral level. Therefore, as long as the TDI line is below the 50 level, the price may hold bearish momentum in the coming hour.
According to the Axie Infinity Price Prediction, AXSUSD bearish momentum may extend towards the 30.00 psychological level, where any bearish rejection from dynamic Kijun Sen or static 37.10 would be a selling opportunity. On the other hand, a bearish channel breakout with a new higher high in the intraday chart would primarily signify the possible bullish pressure.
AXSUSD Intraday Price Action Analysis
In the Axie Infinity Price forecast, AXSUSD bearish pressure is solid as the recent price is moved below the bearish channel support while the dynamic 20 EMA is above the price. Although the gap between the price and dynamic resistance is extended, the upcoming price direction would be bearish as long as it trades within the bearish channel. Moreover, the most recent intraday high volume level is above the price, pushing further selling pressure on the intraday bears.
This technical analysis shows how the MACD Histogram was bearish while the MACD line made a new low without any divergence with the price. Meanwhile, the weekly VWAP is above the price, which might work as a mean reversion.
Therefore, the current selling pressure in the AXSUSD price is valid where any bullish correction and bearish rejection from 37.00 to 40.00 area would be a potential bearish opportunity. On the other hand, if the price moves higher from the channel resistance, it might invalidate the current bearish opportunity by opening room for testing the 44.38 resistance level.
Is Axie Infinity (AXS) A Buy?
According to the Axie Infinity (AXS) Price Prediction, AXSUSD has a higher possibility of moving down towards the 14.50 key support level in the coming days. In that case, any bearish opportunity from the H4 dynamic Kijun Sen would be the most potential zone to join the bearish rally.