AXS falls on a bullish crypto day as Axie Infinity runs into server issues

• 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.

Related: Axie Infinity follow-up: AXS logs new all-time high, more upside ahead?

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.

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.

Related: Axie Infinity (AXS) price retraces nearly 50% from its all-time high

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.