- The RSI line shows a steady bearish divergence concerning the AXS token price
- The AXS/BTC pair was trading at 0.00276 BTC with a gain of 2.0%
- The 24-hour trading volume in AXS token is $1.07 billion, indicating a 55.7% hike
As mentioned in my previous article on Axie Infinity, the AXS token price was struggling to close a daily candle above the $142 mark. However, even though more than a week has passed, the price is experiencing strong selling pressure above this level indicated by long higher price rejection.
As per the EMA’s, the AXS token still indicates a strong uptrend as the price is trading above the crucial EMAs 20, 50, 100, and 200.
The RSI value is at 62, indicating a bullish sentiment in the token. Moreover, the RSI line has shown a significant bearish divergence in its chart, suggesting weakness among the market buyers.
The AXS Token Forms A Pennant Pattern.
The AXS price action reveals an excellent trading opportunity for the crypto traders, as it shows the formation of a pennant pattern in the 4-hour time frame chart. The token price has provided a bullish breakout from this pattern and also retested the broken trendline to obtain proper support. The price is currently trying to sustain above the horizontal level of $134.
The moving average convergence/divergence indicator (BEARISH) provides a great confirmation for the above pattern as both the signal and MACD lines have just crossed above the neutral area (0.00), indicating a switch from a bearish to bullish momentum.
Conclusion: From the technical view, the AXS token’s overall trend is still bullish. And as mentioned above, the chart displays a reasonable possibility that the price will continue its rally as it has offered a bullish breakout from a pennant pattern.’
However, with the RSI constantly falling and the chart displaying several higher price rejection candles, it is suggested that the AXS traders should only enter a new long position if the price reclaims the $142 resistance.
Support– $134, $120
Resistance– $142