Key Axie Infinity Takeaways
- AXS, Axie Infinity’s native token, has been trending sideways for the last two months.
- The AXS/USDT pair resumed its uptrend and is primed for a rally to a $275 top.
- Neutral RSI reading could fuel explosive buying pressure.
JAIPUR (CoinChapter.com) — AXS, the governance token of the leading play-to-earn game Axie Infinity, looks to rally up by more than 50% from current prices. As a result, the AXS/USDT pair already resumed its uptrend rising 10% from the $124 low on Monday.
With more than 2 million players, Axie Infinity is the most widely played blockchain game in the world. But, even with such massive adoption and pole Web 3.0 metaverse platform position, its native currency has traded within a sideways channel since October beginning.
The $120 support held strong throughout the last two months. Nonetheless, AXS prices remained rangebound within $120-$166. However, the calm is a launchpad in disguise. In detail, the sideways price trend translates to a bull flag formation, a textbook technical setup that leads to significant upside runs.
Bull Flag 101
Bull flags show up in asset markets with a history of strong and sustainable rallies. Essentially they amount to positive continuation patterns with a previous vertical price rise resembling a flag pole. The flag pole, in combination with the subsequent consolidation phase, makes up for the bull flag.
Aggressive buying of dips (aka accumulation) by bullish investors/traders restricts a drop in the asset’s spot rates. Therefore, a breakout from these bull flags often results in significant upside moves. The degree of the rally is generally proportional to the length of the last flag pole. Bull flags typically begin to surface in conjunction with a new market rally.
Axie Infinity To The Moon
The flag pole for Axie Infinity’s bull flag setup measures roughly $120 (an all-time high of $166 – the Sep 22 bottom of $50). A $120 upside move from current prices would lead the AXS/USDT pair towards $260. The 161.8% Fibonacci extension level coincides with $267.
The relative strength indicator (RSI) is also trending within a Descending Channel pattern on the daily chart and is awaiting an upside breakout. Price action on the weekly chart also paints a bullish picture.