Astounding Price Rally
In a dramatic twist worthy of a reality TV series, Axie Infinity’s native token, AXS, has skyrocketed by a staggering 135% month-to-date, reaching around $14 on January 23. This uptick marks the highest point AXS has seen in the past two months, casting triumphant vibes across the community. But before you throw a victory parade, it’s time to check the storm clouds lurking in the horizon.
The Bearish Call: Gravestone Doji Pattern
Technical analysts are raising red flags like they’re flagging down a cab after a long night. The price action on January 23 formed what’s known as a “gravestone doji,” a candlestick pattern that spouts bearish vibes. Picture this: the opening, closing, and lowest prices are basically best buds, while the highest price sits alone like the last kid picked for kickball. This signals a rejection of upward momentum, and it’s got the bears sharpening their claws for a price drop.
Current Trends and Indicators
As of January 23, AXS appears to be facing strong resistance around that $14 threshold, leading to an intraday plunge exceeding 10%. Adding more spice to this bearish stew, the Relative Strength Index (RSI) is strutting its stuff in overbought territory and the 200-day exponential moving average is throwing down challenges that AXS seems unprepared to handle.
Price Correction Incoming?
With multiple indicators flashing not-so-friendly signs, it would be prudent to brace for a price correction. The nearest potential downside target rests at the 50-day EMA, which resides around the $8 mark—roughly a 40% plunge looming on the charts. Talk about a rollercoaster ride!
Supply and Demand: A Double-Edged Sword
From the supply side of the circus, things aren’t looking rosy either. AXS experienced a 1.8% bump in its circulating supply on January 23, thanks to a scheduled token unlock. The introduction of 4.8 million new tokens could send investors running for the hills if demand doesn’t step up to fill those shiny new shoes.
Market Sentiment—Cautiously Optimistic?
Despite the lurking pitfalls, analysts can’t completely abandon hope. AXS may still be forming a falling wedge pattern—a bullish reversal sign that often makes analysts swoon with excitement. If history is to repeat itself, we could see the price surge upwards to a heart-thumping $22.50, representing a potential 70% increase from current levels. Fingers crossed, right?
Conclusion: Proceed with Caution
With both bearish patterns knocking and bullish hopes lingering, potential investors should think twice before diving in headfirst. Remember: investing in cryptocurrencies involves risks, and each move should come after thorough research. Seriously.
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