• The Axie Infinity spot CVD and Open Interest suggested bullish sentiment might not be ripe yet.
• Despite the bearish structure at present, AXS showed bullish signs in the 4-hour chart.
• Coinalyze data for the futures market showed little enthusiasm from speculators.
Technical Analysis of AXS
The lower timeframe momentum and structure of AXS were flipping bullishly despite being trapped in a downtrend since February, when prices fell from $12 to $5.9 at press time. On the H4 timeframe, Axie Infinity had trended upward since mid-June before flipping its market structure from bullish to bearish on 26 June. After a sell-off that sent AXS to the $5.43 support level on 28 June, demand seemed insufficient to drive a rally and buyers must beware of this fact. The retest of important Fibonacci retracement levels at $5.43, 5.515 and 5.62 could continue the former upwards move if breached above by prices in shorter timeframes; with a take-profit target at 23.6% extension level at $6.83 as per technical analysis indicators CMF and RSI below neutral 50 highlighting strong capital outflow from the market representing bearish momentum..
Bullish Signs Despite Bearish Structure
Despite the bearish structure prevailing currently, Axie Infinity [AXS] has shown some signs of gaining value on the chart on the H4 timeframe such as moving above local resistanceat $5.74 (white). A breach above H4 lower high at $5.95 would restore bullish intent in favor of buyers once more; allowing traders to open buying positions with take profit target set at 23.6% extension level at $6.83 as per technical analysis indicators CMF and RSI below neutral 50 highlighting strong capital outflow from the market representing bearish momentum..
Fuel From Bitcoin [BTC]
Bitcoin [BTC] has been fueling an altcoin market shift towards bullishness in past two weeks through its own bullish outlook on charts which is likely to have favourable implications for Axie Infinity’s price movements going forward in form of higher rallies or appreciation of asset value over time given right conditions..
Open Interest & CVD Suggestion
Axie Infinity spot CVD (Continuous Variable Distribution) & Open Interest suggests that bulls are not yet ready for a rally due to lack of sufficient demand thus traders should be wary while entering positions in such volatile markets..
Futures Market Speculation
Coinalyze data for futures market show very low enthusiasm among speculators which could possibly imply lower growth possibilities for Axie Infinity’s prices going forward unless supported by other factors like Bitcoin’s Bull Run or increased liquidity/demand etc..