Following AXS' remarkable bull run, Axie Infinity holders may be ready to book profits. Important Points to Remember
- In the last five days, Axie Infinity's AXS token has increased by more than 250 percent.
- Based on technical and on-chain measures, AXS appears to have entered overbought territory.
- The token price might drop to $28 if there is a surge in selling pressure.
While most cryptocurrencies have been battling to restart their respective uptrends, Axie Infinity has been making significant increases. AXS may now be preparing for a correction before continuing on its upward trajectory.
Axie Infinity appears to be overpriced. It's possible that Axie Infinity needs to be updated.
The AXS token from the famous NFT game has astonished cryptocurrency investors in recent weeks, as it has continued to soar without showing any indications of slowing down. The AXS price has risen by a whooping 253 percent in the last five days, from a low of $14 to a new all-time high of $50 on July 24.
The Tom DeMark (TD) Sequential indicator, which showed a buy signal in the form of a red nine candlestick on the 12-hour chart, appears to have predicted the unexpected increase.
This technical indicator has shown to be very useful in predicting where Axie Infinity will go next. The TD has predicted local tops and bottoms since its launch in November 2020.
After flashing a green nine candlestick on the 12-hour chart, the TD Sequential presently signals that Axie Infinity is trading at overbought levels. Before the uptrend restarts, the bearish shape indicates a one to four 12-hour candlestick correction.
If confirmed, AXS might fall to about $28, the 61.8 percent Fibonacci retracement level.
The on-chain activity of Axie Infinity supports the pessimistic theory, with the number of new daily addresses joining the network decreasing. The Daily Active Addresses model from IntoTheBlock demonstrates a bearish gap between network growth and the price movement of AXS. While costs were climbing, the number of new daily addresses peaked on July 13 at 306 addresses.
This type of market action suggests that investors are taking profits, putting negative pressure on Axie Infinity. Despite Axie Infinity's several sell signals, investors should pay particular attention to the recent all-time high of $50. A strong impulse that propels AXS over this key price milestone might invalidate the negative view and lead to higher highs.
This cryptocurrency could target $72 before reaching the psychological $100 threshold under such unusual circumstances.
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