AXS/USDT trimmed gains after Axie Infinity encountered server issues
AXS dropped nearly 30% from its all-time high
Elevated RSI numbers point to overbought conditions
JAIPUR (Coinchapter.com) – It is turning out to be a bad day for Axie Infinity. The explosively popular NFT-based play-to-earn blockchain game ran into server issues: the result – distraught players and an AXS price crash. AXS market’s downturn comes amid a market-wide recovery, with crypto assets reporting double-digit gains.
The AXS/USDT pair was on a tear during the weekend. Spot rates tapped a new all-time high after crashing more than 50% post securing the previous high. From the lows at $14, AXS bulls pushed the in-game governance cryptocurrency to $50.
But Monday’s trading session opened with AXS/USDT swiftly retracting from $45.57 to $35.36. The pair had already logged losses during the 24-hour window (noon-to-noon) from Saturday to Sunday. Selloff accelerated after AXS holders spotted the update on Axie Infinity’s official Twitter page.
Axie Infinity encountered server issues on Monday, July 26. Source: Twitter
AXS Overbought By RSI Standards
Even before the Axie Infinity servers went kaput, bearishness had crept in AXS markets. RSI (Relative Strength Indicator) topped 80.20 on July 23, hinting at overbought market conditions. A gradual depreciation of almost 10 points to 69.86 occurred in tandem with rising selling pressure.
The drop became much more pronounced during the ongoing selloff. With AXS/USDT spot rates crashing down below $35, the RSI wave slipped from 69 to 52.25 points. The decline is expected to continue with the MACD (Moving Average Convergence Divergence) entering a bearish cycle.
Technical Setup
On the 4-hour chart, the AXS/USDT is breaking out of a rising wedge structure. The pair has already dipped below the 0% Fibonacci retracement level ($37.6). Going by the current momentum, AXS risks dropping down to the 23.6% retracement level, which coincides with $29.19.
If bearish pressure continues, the AXS/USDT pair could revisit the $23.98 (38.2% Fibonacci retracement level) and $19.78 (50% Fibonacci retracement level). Spot traders can wait for trend reversal confirmation on the above levels to enter new positions. Even an RSI reversal indication would serve as an entry point to place buy bids.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
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