The recent price action of Axie Infinity has caught the attention of market experts alike, as the cryptocurrency appears to be undergoing a significant trend reversal. After a prolonged period of bearish momentum, marked by lower highs and lower lows, AXS has finally broken out above a key trendline on the 8-hour timeframe chart, hinting at a potential shift toward bullish territory.
As highlighted by Captain Faibik, an analyst, this breakout is not only significant in itself but also confirmed by a retest of the trendline, adding further validation to the newfound bullish momentum. With the downtrend potentially coming to an end, investors are eyeing a 40% bullish rally in the near term, fueled by the anticipation of price reaching new heights.
As further noted by Ali Martinez, the formation of an inverse head-and-shoulders pattern on the weekly chart further adds to the optimism on AXS market. This suggests a potential rise towards the neckline at $13 before a breakout towards $22.
Key resistance levels have been identified to gauge the strength of this bullish momentum. The immediate hurdle lies at $8.00, where the price is currently being tested. Breaking above this level could pave the way for further upside movement towards the major resistance at $11.40, representing a substantial 44.42% increase from the current price.
On the support side, $7.00 emerges as the primary level to watch, providing essential backing to sustain the bullish momentum post-breakout. Should the price retreat, $6.00 stands as a formidable secondary support, historically proven to offer significant downside protection during the downtrend.
The breakout above the trendline not only signifies a potential shift in market sentiment but also hints at bullish prospects for AXS in the coming days. The projected target of $11.40 indicates a notable upside potential, drawing attention from traders seeking to capitalize on the momentum shift.
As of press time, Axie Infinity’s price is $7.76, accompanied by a 24-hour trading volume of $42,439,456. While the token has experienced a slight decline of 0.98% in the last 24 hours, the trading volume has seen a significant decline of 25%, with a value of $43 million.
