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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Axie Infinity continued to labor within a downtrend.
- The bearish bias on the higher timeframe charts meant traders could look for selling opportunities at resistance levels.
Axie Infinity [AXS] witnessed a steady decline in its player base over the past 18 months. There were 2.7 million active users in January 2022, and that number stood at 348k in August. This raised questions about whether AXS would survive this cycle and thrive in the next.
Realistic or not, here’s AXS’ market cap in BTC’s terms
In the near term, more losses were likely inbound. The higher timeframe trend was firmly bearish for the token, and the sentiment across the market was weak as well.
Axie Infinity has a strong bearish bias across multiple timeframes
Source: AXS/USDT on TradingView
The H4 chart showed that the lower high to beat to flip the structure bullishly sat at $4.69, formed on 1 September. However, such a break will not signal an uptrend is beginning. The Fibonacci retracement levels (pale yellow) showed that the 50% and 61.8% levels at $4.72 and $4.79 would likely be hefty barriers for the bulls.
At the time of writing, there was no strong evidence that AXS could climb to these resistance levels. Bitcoin [BTC] was trading within a long-term support zone, and a BTC bounce could see AXS climb higher. Yet, that would more likely present a shorting opportunity than lead to a recovery. The 23.6% extension level to the south could be the next bearish target.
The RSI was at 45 and showed neutral momentum, while the OBV was also in a downtrend in recent weeks. Both indicators climbed higher over the past three days as Axie Infinity prices witnessed a minor bounce.
How much are 1, 10, or 100 AXS worth today?
The rise in demand hinted at a possible short-term price move higher
Source: Coinalyze
When AXS jumped from $4.45 to $4.58 on 6 September, the Open Interest also had a boost. Close to $2 million worth of contracts were entered and signaled some bullish conviction in the market. A similar OI move upward was seen on 3 September as well.
The spot CVD also bounced higher in the past few hours to indicate a rise in demand in the spot market. It remains to be seen if this small shift in sentiment would snowball into something bigger, or whether the bears will assert their dominance once more.
