Axie Infinity drops below $50, is this a bargain buy or is there more pain in store
A week ago the price of Axie Infinity stood at $75. However, even though there was a confluence of support levels right beneath $75 on lower timeframes at that time, the price crashed right through. This was not an isolated incident. The price of AXS has been steadily dropping, at times it has even dropped like a rock between levels of resistance to the next support, as selling pressure has been quite strong at times. At the time of writing, there was some support at the $45.18 level, with the price at $46.67 at press time.
Source: AXS/USDT on TradingView
The market structure on the 12-hour chart has been immensely bearish. The previous highs on the charts were not even approached in many instances. Long red candles are more of a norm than the exception in recent weeks for AXS, with many of the individual candles (12-hour sessions) representing double-digit percentage losses.
This reinforced the idea that demand was nowhere to be found for AXS. There was some decent demand at $92.5, and then once more, very briefly, at $70 in the past month.
At the time of writing, the price did bounce off the $45.18 level. However, there was no sign yet that a trend reversal was in sight.
In August, the price had compressed for a few days just beneath the $45.18 level. It had also bounced a couple of times between the $38 and $45 levels, and represented a pocket of liquidity.
In the next few days or a couple of weeks, a similar scenario could unfold. AXS could find some demand and possibly bounce higher from the $38-$46 area (yellow). At the same time, the more likely scenario to unfold appeared to be some sideways trading within this liquidity pocket, exhaust the buyers and force the prices even lower.
Source: AXS/USDT on TradingView
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