Axie Infinity (AXS) cost dropped dramatically on June 1, suggesting that it is supersonic gains within the last 2 days may have been part of a bear market rally.
The AXS/USD pair soared 54% week-to-date to in excess of $28 on May 31, its greatest level in three days. But Axie Infinity cost unsuccessful to carry increases, correcting by greater than 21% to $22 while raising the potential of more disadvantage to come.
Buying and selling behavior observed within the last 24 hrs supported the down-side outlook, with AXS/USD buying and selling volume spiking throughout the selloff on May 31.
AXS cost bear trend
Axie Infinity’s ongoing contact with Bitcoin (BTC) and traditional stock markets seemed to be instrumental in pushing its prices lower on June 1.
Particularly, AXS’s correction within the stated period coincided with Bitcoin’s move lower from around $32,250 to below $31,500 with U.S. stocks resuming their downward trajectory following the Memorial Day holiday close on May 30.
Furthermore, AXS’s cost correction started near a confluence of technical resistances, that contains an assistance-switched-resistance aroun the $27-29 region and also the 50-day exponential moving average (50-day EMA the red wave within the chart below) around $29.
No V-shape recovery
When the pullback continues, AXS risks retesting its previous support line near $18.40, lower about 20% from today’s cost. Concurrently, the persistent positive correlation with Bitcoin and stock markets can often mean additional cost declines underneath the $18.40-level.
“There is no V-formed bottom here,” argues Michael Antonelli, md and market strategist at Baird, noting the factors that brought towards the decline over the risk assets in 2022— mainly the eye rate hikes—are likely to stay within the coming quarters.
Related: Bitcoin’s recent gains have traders calling a bottom, but various metrics remain bearish
Meanwhile, independent market analyst PostyXBT believes that AXS must close above $40 to validate a lengthy-term bullish rebound. For now, the AXS/USD pair remains vulnerable to more disadvantage to come.
“Take part in the relief bounces try not to overstay your welcome,” PostyXBT told his 79,200 social networking supporters.
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