The price of Axie Infinity is approaching an oversold level, indicating a trend reversal in favour of the bulls. A bullish technical pattern has formed as a result of this price action, adding to the positive outlook of the asset.
The price of Axie Infinity saw a rally of 62% between January 24 and February 7, forming a range of £35.1 to £57.2. Since then, the bulls and bears have respected these barriers.
A sweep of one of the limits is frequently seen in range-bound price action, and then a run toward the other boundary. On the 24th of February, the range low was swept first, followed by a rapid recovery and an 80% rally that deviated above £57.2, the range high, to create a swing high of £59.8.
This strong upswing witnessed another corrective wave that reversed the gains made since February 24 and sank below the previous swing low of £33.1. The latest daily candlestick has established a makeshift swing low of £31.2, which might be breached if selling pressure rises. This being presumably the point of price reversal, investors can wait for a recovery above the range low of £35.1 before entering a long position.
On 29 January and 26 April, the Axie Infinity price made a lower low, but the Relative Strength Index (RSI) made a higher high, indicating the emergence of a bullish divergence.
The momentum is on the rise while the token’s price is making a lower low.
A significant rebound above £35.25 will be a buy signal, implying a 40% increase to the range’s midpoint of £46.33 or a 75% increase to the range high of £57.41 from the current position of £32.88.
Since October 27, 2021, the supply of AXS on exchanges has been declining, falling from 6.16 million to 2.1 million. This 4.06 million drop implies that investors are growing increasingly bullish on the asset.