Can Axie Infinity (AXS) Price recovery approach $6 Zone in September

Can Axie Infinity (AXS) Price recovery approach $6 Zone in September

On Thursday, there was notable potential growth among the top 100 gaming tokens in the cryptocurrency market. Simultaneously, the leading Metaverse project, Axie Infinity, has reclaimed its position within the top 50 crypto market rankings after witnessing a 12% surge in value today.

The bulls exhibited strong determination today, propelling the price of Axie Infinity (AXS) from $4.2 to reach a 20-day high of $5.15. However, as of the latest update, the AXS price has settled at $4.61, reflecting an impressive overnight gain of 10%. This surge in bullish sentiment can be attributed to an influx of buyers, as evidenced by a staggering 330% increase in trading volume, which now stands at $97 million.

It's worth noting that this buying frenzy occurred at a point close to AXS token's yearly low of $4.06. This begs the question: can this sudden surge in buying activity prevent investors from experiencing yet another yearly low?

Source: Coinglass

As per data from Coinglass on September 14th, Axie Infinity (AXS) token experienced its highest level of liquidation in the past 30 days. Approximately $1.59 million was liquidated in the last 24 hours, with a notable portion of nearly $933,000 occurring due to short positions being closed.

Source: Tradingview

Despite the prolonged decline in its price, the AXS token has been following a descending wedge pattern since the beginning of this year. Recently, it rebounded from the support trendline of this pattern, indicating that bullish activity is gaining momentum and traders are taking this pattern into consideration.

However, it's important to note that the next resistance level appears to be quite a distance away from the current price, as indicated by Fibonacci retracement levels. The next significant bullish obstacle is expected in the $6.0 range, and it will require strong buyer interest to drive the price towards this recovery zone.

Source: Tradingview 

Buyers have initiated a recovery phase for AXS, keeping the token above the 20-SMA (Simple Moving Average) and closing in on the 50-SMA. It's worth noting that a robust recovery could be in the cards if the bulls can sustain the price above the 100-SMA.

In support of this recovery, the RSI indicator is trending towards the higher zone, with the currency currently positioned in the 48 range. Conversely, the ADX (Average Directional Index) indicator has recently started to decline, signaling a cooldown in selling pressure within the market.

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This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.