- AXS ready for a bullish breakout after moving inside a bull penant for some time.
- Meanwhile, Axie Infinity realeased a controversial update on Oct 15.
NEW DELHI (CoinChapter.com) — AXS, the top trending blockchain-based video game Axie Infinity’s governance token, looks poised to undergo a bullish breakout.
The gaming cryptocurrency has been painting a Bull Pennant, a bullish continuation pattern that emerges when an instrument consolidates between two converging trendlines after undergoing a price rally. Ultimately, a breakout in the direction of the large initial movement follows the period of consolidation.
However, it is important to note the volume. As in, volume during consolidation should be low while it must increase during the breakout move. Otherwise, prices are more likely to pull back inside the consolidation pattern.
If AXS breaks out of the bull pennant, it can target a price level at least 80% higher than its current prices, which would mean a price target of $232. In addition, the current price target for a bullish breakout is 44% higher than the Axie token’s previous ATH of $161.
The Axie Infinity token has immediate resistance just above the descending trendline of the bull pennant at $137.25. If a breakout occurs and the price breaches above immediate resistance, bulls’ next resistance target would be $146.72. Meanwhile, a sustained uptrend would bring resistance near AXS’s ATH at $158.5 into play.
However, if the breakout fails, AXS would find support at $117.87, near its 26-day Exponential Moving Average line. Any further sell-off due to panic would pull prices down to $108.10, a key support level for the Axie Infinity token since prices moved above it on Oct 1.
The 50-day MA line provides additional support for AXS at $95.5. However, a fall to this level would eat away the 78% gain that AXS is enjoying this month. In addition, the relative strength index for the Axie token is neutral at a value of 62.10.
Meanwhile, MACD continues to be bearish for AXS. Bars on the MACD histogram went below zero on Oct 15. Negative bars indicate the MACD line (difference between 12-day and 26-day EMA) has moved below its signal line (9-day EMA of MACD).
However, the MACD line seems to be moving upwards, indicating the bearish momentum might be nearing its end. Moreover, the Axie Infinity token is bullish across all horizons, as its 50-day and 200-day MA trendlines indicate.
Axie Infinity’s Latest Update Sparks Controversy In Players
Axie Infinity recently unveiled a major update that directly affects players’ ability to earn in-game tokens. Sky Mavis, developers of Axie Infinity, has proposed a cap on users with a matchmaking ranking (MMR) below 800 from earning Small Love Potions (SLP).
As a result, players with MMR below 800 cannot earn SLP in the adventure, arena, or daily quest mode. Although the move aims to prevent players with low skill levels from abusing the MMR system to score easy SLP tokens, not all players are happy with the announcement.
The update, version 1.1.0a, also includes other changes, such as resetting ‘Axies’ to level one each they change hands. Axies are creatures that players buy, breed, or use in battle against other Axies to win SLP tokens. In addition, players can exchange SLPs for fiat currencies.
Each Axie is an NFT, a unique collectible that players can buy and sell across exchanges outside the game.
The latest update also brought back the option to challenge friends.
On Oct 20, Axie Infinity developers released an official statement that stated they had received a lot of feedback from the Axie Infinity community. The statement said the update is important to help better balance a player’s skills and their financial benefits.
The developers also highlighted that the update regarding MMR below 800 would keep bots out of Axie Infinity. The statement also revealed developers had found bots embedded in the gameplay. In detail, a bot is a software code that performs automated and repetitive tasks.
At the time of writing, AXS was trading at $136, up 11.5% on the day.