Axie Infinity (AXS) price analysis: Is a rally to $80 likely?
Axie Infinity may rally to $80 in the short term
Axie Infinity’s AXS token has witnessed a massive rally in the past few days and the bulls are attempting to resume the upward move as of 29 March 2022.
The recovery in the price of the play-for-cash token has been boosted by the news that the Axie Infinity: Origin launch may happen in the next few days.
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The new game promises to engage the players in a better storyline, add new in-game items to improve the experience and provide free starter Axies to attract more new players
The platform saw a massive surge in active players in 2021 but the growth seems to be tapering off in 2022, according to data from the gaming statistics company ActivePlayer. Expectations are that the new game could again kick-start growth.
A new study by NonFungible.com and L’Atelier BNP Paribas highlighted that 2021 was a strong year for non-fungible tokens (NFTs), which saw sales explode more than 200-fold to $17.7 billion in 2021 from $82.5 million in 2020. Axie Infinity turned out to be the blockchain gaming industry leader in the NFT market, with $3.5 billion in NFT transactions.
Could the new game stimulate growth? Could AXS go up further? Read the AXS price analysis to find out what the charts suggest.
Axie Infinity technical analysis: weekly chart
AXS’s price had been in a strong downtrend since hitting its all-time high in November of last year. The bulls stepped in near $45 and arrested the decline. This has pushed the relative strength index (RSI) toward the midpoint, suggesting that the bearish momentum may be weakening.
The recovery is facing resistance near $70 but if bulls clear this hurdle, the relief rally could reach the 38.2% Fibonacci retracement level at $89.19. In strong downtrends, the bears try to stall the recovery near this level and resume the downward move. But if bulls clear the obstacle at $89.19, the rally could extend to the 50% retracement level of $102.79.
Contrary to this assumption, if the price turns down from the current level, the AXS/USD pair could again drop toward $45.19. The bears will have to sink and sustain the price below this level to signal the resumption of the downtrend.
Axie Infinity technical analysis: daily chart
AXS’s price has been range-bound between $45 and $72 for the past several days. The pair has risen sharply from $45 and the bulls are attempting to clear the overhead hurdle. The RSI has jumped into the positive zone, indicating that the path of least resistance is to the upside.
If buyers propel the price above $72, the pair could start a new uptrend. There is a minor resistance at $80 but if bulls overcome this barrier, the upward move could reach the pattern target of $99.
Contrary to this assumption, if the price turns down sharply from the current level, it will suggest that the bears are not willing to relent. That could keep the pair stuck inside the range for a few more days.
Axie Infinity: Buy or sell at current levels?
Axie Infinity’s price analysis suggests that the bulls have the upper hand. A break and close above $72 could push the price to $80 where the bears may attempt to stall the upward move. If buyers push the price above this level, the pair could rally toward $99. This bullish assumption will be invalidated if the price turns down sharply from the current level.
Whatever the outcome might be, your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you are about losing money. This analysis does not constitute investment advice. It’s important to make your own analysis before deciding to invest. You should never invest more than you can afford to lose.
