Axie Infinity: This new bullish divergence may trigger a near 75% upswing
Axie Infinity price approaches an oversold condition that hints at a reversal in trend favoring the bulls. This price action for AXS has also produced a bullish technical formation that adds further credence to the optimistic outlook.
Axie Infinity price rallied 62% between 24 January 24 and 7 February and created a range, extending from $44.27 to $72.10. These barriers served as a boundary that the bulls and bears have respected ever since.
The range-bound price action often sees a sweep of one of the limits followed by a run toward the opposite limit. For Axie Infinity price, the range low was swept first on 24 February, which was followed by a quick recovery and an 80% rally that deviated above the range high at $72.10 to set up a swing high at $75.45.
This massive upswing was followed by another corrective wave that has undone the gains since 24 February and swept lower than the previous swing low at $41.79. The current daily candlestick has set a makeshift swing low at $39.40, which could be overrun if the selling pressure increases. Assuming, this is where the price reveres, investors can be patient and wait for a recovery above the range low at $44.27 to enter a long position.
Interestingly, Axie Infinity price has set a lower low on 29 January and 26 April, while the Relative Strength Index (RSI) has created a higher high, indicating the formation of a bullish divergence.
This technical formation reveals that the momentum is rising while the asset’s price is producing a lower low. This divergence often produces an uptick in the market value of the underlying asset.
Therefore, a strong recovery above $44.27 will be a buy signal that could lead to a 40% upswing to the range’s midpoint at $58.18 or a 75% ascent to the
Read more on ambcrypto.com
