Axie Infinity Faces A Potential Price Drop Over The Weekend, Creates A Buying Opportunity
Axie Infinity, a popular blockchain-based game, has recently shown strong short-term bullish momentum. However, there are indications that prices will decline at the end of the coming week. In such a scenario, the previous resistance level around the $5.1 region could become a retest of support. This article analyzes current market trends and explores potential buying opportunities that may arise.
On Tuesday, June 20, Axie Infinity (AXS) topped the local resistance zone between $5 and $5.2. This region previously acted as a formidable barrier since June 10. In particular, the H4 price charts for most altcoins show a bullish trend, suggesting a recovery after the recent 36-hour pullback.
AXS followed a similar trajectory and showed a bearish divergence with the price. However, despite the bearish sentiment prevailing on the higher time frames, the shorter time frames, such as the 1 hour and 4 hour charts, are showing promising signs of an advance.
Bitcoin (BTC)’s trajectory at time of writing remains bullish. BTC bulls hold on to the $30k level, even after a temporary dip to $29.6k-$29.8k. This stability is very important for altcoin markets, including Axie Infinity, as they drive positive sentiment around BTC and Ethereum (ETH).
Although AXS may lose its hard earned gains if market sentiment changes, the current evidence supports a bullish scenario. A bearish divergence (orange) between price action and the RSI indicates a possible downside for Axie Infinity. However, the H4 market structure remains bullish, and the trading volume shows an upward trend. In addition, OBV (On-Balance Volume) has shifted the last ten days resistance level to a support level, indicating increased buying pressure.
Considering the search for liquidity and potential market volatility, the upcoming weekend and Monday trading sessions can play a significant role. AXS might drop below the short-term H1 support at $5.35 to trigger stop-loss orders or retreat to the $5-$5.1 region to overcome any imbalances created during the advance to $5.5. Such dips could present a lucrative buying opportunity, targeting $6.
Additionally, Open Interest, an indicator of market activity, was recently up nearly $7 million over the past three days. Simultaneously, Axie Infinity recorded a gain of around 14%. While the OBV continues to show strong buying pressure, Coinalyze’s spot CVD (Cumulative Volume Delta) is showing the opposite trend.
Over the last 48 hours, a visible downtrend has emerged, reinforcing the possibility of a short-term pullback. Significantly negative funding levels also indicate that a large portion of the market has taken short positions.
A potential return visit to the $5.1 region in the Axie Infinity price trajectory presents an attractive buying opportunity, with a clear rollback point should the price drop below $4.8. Traders and investors should closely monitor market dynamics, as weekends and negative funding levels can contribute to increased volatility.
