- AXS logs a new all-time-high at $32.12
- The NFT gaming asset looks primed to rally to the 161.8% Fibonacci extension level
- Momentum points to overbought conditions
JAIPUR (Coinchapter.com) – Axie Infinity Shards, a.k.a AXS, is on a tear. The Axie Infinity ecosystem’s ERC-20 governance token surged past its previous all-time high to log a new one. AXS’s explosive run comes amidst the cryptocurrency market’s widespread recovery.
It’s one of those rare occurrences in the cryptosphere, where an asset dropped 50% from its previous all-time high. But then rebounded, rallied, and registered a new high. That too in a market which is still down almost 50% from its overall all-time high. AXS’s latest rally is one such occurrence.
Our previous analysis discussed how Axie Infinity’s native cryptocurrency posted a 42% rebound run to $24.73 from the lows near $14.5. We also delineated a possible scenario for AXS charting a new all-time high. Our predicted setup played out appropriately. The asset’s latest rally added another 23% to AXS prices in the surge to $32.12.
Axie Infinity’s AXS To Fly To $38.51
In the flight to secure a new all-time high, AXS cleared past key resistance levels. These levels coincided with the 38.2% ($19.89), 61.8% ($23.45), 78.6% ($25.98), and the 100% ($29.2) Fibonacci extension levels.
The next target for bulls is $38.51 (coinciding with the 161.8% Fibonacci extension level). AXSUSDT spot rates have remained well above the crucial 20-day exponential moving average (EMA) since opening the London bell on July 21.
Sales volumes have sky-rocketed in the last 30 days. The total volume of Ethereum circulating on the platform translates to 254,644.7 ETH ($522,171,862.37). A total of 1118445 Axies have been sold in the Axie infinity marketplace.
Axies are digital pets that players engage in in-game battles on the platform. So naturally, buyers need AXS to buy and train these digital pets, so the buying pressure is increasing.
But Overbought Conditions Abound
AXS’s rally to a new all-time high has put the asset in the overbought zone. It is evident from how the RSI wave ticked above 70, the upper level of the band. MACD has reached the peak of its bullish cycle in the current zone.
Sellers have stepped in to put stops on AXS’s bull run. However, the selling volume is not challenging enough for the bulls to retract back in their tracks. Nonetheless, it would make sense for traders to tread carefully, as selloffs usually come in “cascading” shapes and sizes.
A short correction phase may follow. It’s an excellent opportunity for traders to book profits—those who entered new positions at $14.5 prices. For folks looking to buy, a reversal confirmation could serve as a great entry point. Traders looking to short AXS might also wait for signs confirming a downtrend. Probably another red candle of similar size should do the job.