highlighted how longer-term holders were holding the token at a loss. Technical analysis showed that a strong move upward was underway, and a buying opportunity could present itself on a pullback.Source: AXS/USDT on TradingView
On 5 December, Axie Infinity registered a strong spurt upward in prices. In doing so it broke the market structure from bearish to bullish on the daily timeframe. Important horizontal levels at $8.8 and $7.64 were broken, and $8.8 has been retested as support on lower timeframes. On the six-hour chart, a fair value gap was spotted in the $7.35-$8.1 area. Highlighted in cyan, this FVG can be retested shortly. Although AXS has rocketed higher on large trading volumes, a pullback was still possible. The Relative Strength Index showed strong bullish momentum while the On-Balance Volume ’s swift gains were indicative of hefty demand in the markets.
Traders looking for a good risk-to-reward buying opportunity can wait for a retest of $8.8 on lower timeframes. A move below this level can see Axie Infinity dip toward $8, which can also interest buyers. Invalidation of this idea would be a drop below the recent higher low at $6.6.The enormous spike in demand for AXS seen on the OBV in recent days seemed to have some correlation with the network growth.
At the same time, the mean coin age was also on the rise. This showed AXS didn’t move around a lot but stayed in their wallets, which in turn suggested accumulation across the network.Subscribe to get it daily in your inbox.