AXS - Axie Infinity is Approaching its Buying Zone

AXS / TetherUS BINANCE:AXSUSDT

Booming-Crypto-Ideas

The Back Ground and Psychological Support Zone
The AXS last bull move gave us hefty returns of 6200%, which started from 2.64$ on Jun 29, 2021, and made an ATH of 167 on Nov 6, 2021. However, this massive gain leads to a correction that later converts to deeper correction and ends in the shape of a crash, and currently, it trades below $50. It shed almost 73% of its gain and trading in a well-established downtrend/ descending channel ; it got rejected three times from the upper side while trading within this channel. The fibo levels from last bull runs are playing their part. We see 0.50 and 0.786 levels act as barriers but did not last as final lines. Now price is entering into a strong support zone that has its back from the July, Aug 21 trading range when the price remains range-bound after a massive first move. At the same time, RSI has been in the downtrend since the start of Oct 21, capped by a trend line , currently in oversold territory.

Point:

• Bullish divergence is in play that will trigger the next bull run.
  
• It entered into a strong support zone .
  
• In the last down move, volume remains below average.
  
• Trading activity/ volume increased in the last 4 days.
  
• Fibo retracement 0.786 and support zone lower levels are the same, providing a solid support level that will hold.
  
• It already shed 73% of its all times grains.
  
• RSI is in the oversold zone and showing weak bearish signal
  

Pay Attention
Observe its price action in the support zone (a rejection from downside with good volume and confirmation on next day), wait for the positive signals from all sides like RSI needs to recover to let the bullish divergence play its part. Moreover, RSI needs to break the trend line , which has been holding in a downtrend since Oct 21. A rejection from downside and RSI trend line break are two key signals you need to get in

Risk / Reward and Holding Period
Buying near the $40 level can be a good idea (or within the support zone ). Keep in mind any move below 37 will be short-lived, so if you got an opportunity between 30 to 31 levels, that would be a great level to enter. But chances are rare. The TP1 is 90$, TP2 is its ATH , and the 2022 target is 350$. The minimum holding time for this trade is two quarters.

It is not financial advice; always do your research.
Please, feel free to ask your question; write it in the comments below, and I will answer.


from TradingView Ideas https://ift.tt/3o6ShSK
via gqrds

source https://www.smartmoneymanagement.info/2022/01/axs-axie-infinity-is-approaching-its.html