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Axie Infinity (AXS) has been falling since April 2 and fell below the previous breakout level on April 6.
AXS has been falling underneath a descending resistance line since reaching an all-time high price of $166 on Nov. 6. So far, the downward movement has led to a low of $41.9 on Feb. 24.
The price has been moving upwards since and broke out from the aforementioned descending resistance line on March 16. The breakout led to a high of $75.55 on April 2.
However, the upward movement could not be sustained and AXS has been falling since. It is now approaching the $47 support area once more. This same area was the catalyst for the upward movement that led to the breakout.
Therefore, it is crucial that the price remains above this level in order for the bullish structure to remain intact.
Future AXS movement
Cryptocurrency trader @CryptoNTez tweeted a chart of AXS, stating that the coin is currently accumulating and trying to flip the $65 area as support.
However, the price failed to sustain the rally and decreased instead.
A closer look at the movement shows that AXS failed to hold above the $55 horizontal area. The area had been intermittently acting as both resistance and support since Jan. 22. Therefore, the breakdown below it is a bearish sign.
The area is now expected to provide resistance.
However, there is a hidden bullish divergence in the RSI and the MACD is still positive. Nevertheless, these signs are not sufficient in order to predict a potential bullish trend continuation, especially since AXS failed to hold on above the $55 area.
Wave count analysis
While the longer-term wave count still remains unclear, it is possible that AXS has completed an irregular flat correction in the period between March 25 and April 7.
Waves A:C had an exactly 1:1.61 ratio, which is common in such corrective structures.
If correct, a substantial bounce would follow in the short-term.
However, the long-term trend remains unclear.
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