A Wild Ride on Axie Infinity
June 1 marked a turbulent day in the world of Axie Infinity as the price of AXS took a nose dive, leaving many investors questioning whether the surge seen just days prior was a genuine recovery or simply a bear market rally masquerading as a bull party. With a stunning 54% gain within the week leading to May 31, reaching over $28, the prices seemed promising, but it wasn’t long before reality kicked in, and AXS corrected sharply by more than 21%, leaving it floundering around $22.
Selling Pressure: AXS and Market Correlation
The trading patterns leading up to this sharp descent painted a clear picture of mounting selling pressure. As traders rushed to hit the sell button, volumes surged on May 31, indicating that AXS holders might have gotten cold feet. What’s more, AXS’s fate seemed entwined with Bitcoin’s fate during this time. As Bitcoin dipped below $31,500, so did the hopes of Axie traders, reflecting a broader risk-off sentiment in traditional markets.
Resistance Levels and Technical Analysis
Compounding the drama was the technical landscape that AXS found itself stuck in. The price correction brought AXS into a critical zone of resistance around the $27–$29 range, coinciding with the ominous 50-day exponential moving average. Picture this: it’s like finding yourself between a rock and a hard place – only the rock weighs 50 pounds, and the hard place is a bear market.
The V-shaped Recovery: A Myth?
One notable voice in the crowd is Michael Antonelli, a seasoned market strategist, who suggests that a reverse V-shape might be more applicable here. With lingering concerns such as ongoing interest rate hikes looming over risk assets, there’s little to suggest that a swift recovery is on the horizon. Buyers hoping for a quick bounce-back may have to temper their expectations and keep a close eye on support levels.
Future Predictions: Riding the Waves
If AXS’s prospects look bleak, that doesn’t mean you can’t ride the waves of occasional price spikes. Independent analysts, like the ever-charismatic PostyXBT, warn that the AXS/USD pair will need to break above $40 to inspire confidence. Until that day comes, savvy traders might want to enjoy relief bounces while keeping their exit strategies on hand.
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