After rebounding from its lowest points in June, Axie Infinity (AXS) could not establish a bullish structure today. Therefore, a decline may happen shortly as the token hits a major resistance.
AXS Continues Bearish Pattern
Among the highest cryptocurrencies, AXS has had one of the poorest performances due to a sudden reversal. Since June 18th, AXS has been climbing upward after breaking out from a falling resistance line which has been in place since March.
However, the resistance denied the token twice at $18.75 and failed to start a massive upward rise. The inability to break out reveals severe vulnerability, given that the token could not sustain the breakaway. Therefore, the price will likely decrease below its lows in June after the latest rejection.
AXS/USD Chart Source: TradingView
Since its June low points, AXS has been moving inside a rising parallel channel, as shown on the chart. Such channels frequently include correction movements, therefore, the most likely outcome would be a decline from them.
Furthermore, the daily RSI has fallen below 50, suggesting the probability of a price decline. Therefore, a breakout from the channel is anticipated based on technical indicator readings and the price action from the daily time frame. The token price would probably reach a new annual low as a result.
Future Predictions For AXS
Judging from the token’s all-time high, AXS appears to be in the fifth and last wave of a negative impulse. The above channel indicates that wave four of the market movements are underway.
Therefore, a collapse from this line would demonstrate that the fifth and last wave is indeed in progress. The price of $9.60 represents the first probable target for the downward movement.
Meanwhile, the number of AXS holders is declining. Usually, AXS acts as a token within Axie Infinity’s gaming environment, allowing gamers to acquire native NFTs, which are a slew of digital creatures known as Axies.
Additionally, players may use it as a labor token to produce additional Axies. Newcomers that join the Axie Infinity community require Axies to compete against others.
While winning bigger competitions awards them AXS, the system also pays winners with another native coin called Smooth Love Potion (SLP). Old players, therefore, depend on new ones to keep the demand for Axies high.
If there are no new users, there is the chance that old players would dump their AXS and SLP winning on exchange platforms. This would put more downward pressure on the prices of AXS and SLP.