Axie Infinity: How AXS traders can look at riding the potential breakout rally

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice

In their efforts to ease down the sell-off situation, the buyers finally managed to flip the three-month trendline resistance to support (white, dashed). After the recent retracement pulling down the price towards its February lows, Axie Infinity (AXS) marked a down-channel (yellow) on the 4-hour timeframe.

For the bulls to break the bounds of the current pattern, they needed to find a stiff close above the 50 EMA (cyan). Failing which, the alt would continue its tight phase. At press time, AXS was trading at $47.363.

Source: TradingView, AXS/USD

Since late March, AXS has formed consistent lower highs and troughs. A falling wedge and a descending channel mapped out this course in the 4-hour timeframe. This pullback went all the way until the $43-mark on 18 April.

As this mark coincided with the lower trendline of the down-channel and the trendline support, the buyers were able to clinch an upswing above its 20 EMA (red). The Pitchfork tool’s lower trendline offered excellent support as AXS entered into a squeeze phase over the last day.

What’s more, the recent bearish engulfing created a stiff resistance in the $47-$48 range along with the 50 EMA barrier. Thus, a likely reversal from this mark could delay its recovery. Any fall below the Pitchfork’s lower boundary would brace the alt for a $45-retest before a bullish comeback. For an entry trigger, the buyers should ideally wait for a compelling close above the median of Pitchfork.

Source: TradingView, AXS/USD

The RSI’s reading hinted at resonated with the recently increasing buying force. While it lurched just above the mid-line, it still needed