The Dismal Dive: What’s Happening with AXS?
In a shocking twist worthy of a video game plot, Axie Infinity (AXS) has plummeted by nearly 30% just two weeks after a massive hacking incident wiped out $625 million from its Ronin Network. As of April 11, the price fell to $46.69, making traders feel as if they were stuck on a never-ending level of a game stacked against them.
Market Reaction: Who’s Still Buying?
The market doesn’t seem enthusiastic about this downfall. Independent market analyst TJ notes a distinct lack of buyers, despite prices entering zones that have historically attracted accumulators. Think of it as a loot box that no one wants to open, with the promise of treasure feeling more like a cursed relic. AXS dipped below the pointed demand zone, which could further expose price levels closer to $45.
Will AXS Bounce Back?
Despite the gloomy forecast, AXS isn’t ready to call it quits just yet. Sky Mavis, the creative team behind Axie Infinity, reassured players that all stolen funds would be reimbursed. The cherry on top? A shiny $150 million fundraising round led by Binance to instill some optimism. However, the chart tells a different story, as it hints at a death cross between the 20-day and 50-day EMAs, creating a sense of foreboding.
Key Support: The $45 Level
That $45 level has become a pivotal point for AXS. Before this calamity, it acted as an accumulation zone, lifting prices nearly 70% in previous reclaim cycles. While currently flirting with the support line, the daily RSI suggests there might be a glimmer of hope, as it dips below 30, a classic oversold signal.
Analyzing Patterns: Falling Wedges & Head-and-Shoulders
Diving deeper into the price action, the four-hour chart reveals an oversold RSI reading near 25. Normally, you’d expect a falling wedge pattern, but AXS is breaking down instead—classic case of not following the rules. If it can manage to hold above that $45 support, there’s potential for a rebound, possibly pushing towards $58. However, letting that support crack could unleash a head-and-shoulders pattern with targets as low as $12, making it feel like you’ve just faced the final boss but lost the game.
The Bottom Line
AXS’s recent adventures echo the volatile world of gaming and trading alike; filled with uncertainty and the lurking threat of a disaster. While the immediate outlook seems perilous, the combination of historical support and oversold conditions suggests that anything could happen. Whether you’re a die-hard fan or a cautious investor, keep your eyes peeled—this saga is far from over.
