Axie Infinity finally burst through resistance and reached a new all-time high after a brief consolidation period. Now that AXS entered price discovery mode, another leg up seems imminent.
Further Gains on Axie Infinity’s Horizon
The 280% run-up that Axie Infinity experienced between Jul. 20 and Jul. 27 seems to have created the flagpole of a bullish flag pattern that formed on this cryptocurrency’s 12-hour chart. Meanwhile, the symmetrical triangle that developed following the massive upswing created the pattern’s flag.
A recent spike in buying pressure allowed AXS to slice through the flag’s upper trendline at $45. The breakout has seen this cryptocurrency gain over 40% in market value to reach a new all-time high of $60.
If buy orders continue to pile up, Axie Infinity could rise another 30% toward $78. This target is determined by measuring the flagpole’s height and adding that distance to the breakout point.
The news moving money, markets, and the world—before your day starts.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
It is worth noting that AXS needs to hold above $53.60 for the bullish flag to remain as the governing pattern behind its price action. If sell orders were to pile up around the current price levels leading to a breach of the underlying support, then an increase in profit-taking may come into play.
Under the unique circumstances where Axie Infinity loses $53.60 as support, it would be prone to a steeper decline toward $45 or $38.50. Moving past the $38.50 demand wall could serve as confirmation of a trend reversal from bullish to bearish.
