Since April 2, Axie Infinity (AXS) has been declining, and has just dipped below the previous breakout level.
Following an all-time high of £127 on Nov. 6 last year, AXS has been dropping under a downward resistance line. So far, the downward trend has brought the token to a low of £32.1 on February 24.
Since then, the price has been going upwards, breaking out of the downward resistance line identified earlier on March 16. On April 2, the breakout resulted in a high of £57.9.
The upward trend, however, was short-lived, and AXS has been decreasing since. It is once again approaching the £36 support area. The upward momentum that led to the breakthrough was sparked by this same area.
As a result, it’s critical that the price stay above this level to keep the bullish structure intact.
Some of the recent charts of AXS movement came out stating that the coin is now accumulating and attempting to turn the £49.8 area into support.
The price, however, was unable to maintain the rally and instead fell.
A detailed examination of the movement reveals that AXS failed to maintain its position above the £42.1 horizontal area. Since January 22, the area has alternated between opposition and support. As a result, the break below it is a bearish sign.
It is now expected that the area will provide resistance.
The RSI, on the other hand, has a hidden bullish divergence, and the MACD is still positive.
However, these indicators are insufficient to forecast a likely bullish trend continuation, especially as AXS failed to hold above the £42.1 level.
While the longer-term wave count is still unknown, it’s probable that between March 25 and April 7, AXS completed an irregular flat correction.
The waves exhibited a ratio of 1:1.61, which is not unusual in corrective structures.
In the short term, if the forecast stands correct, there will be a significant bounce. The long-term tendency, however, is still unknown.
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