Axie Infinity rockets past $10, could push higher without significant retracement

Disclaimer: The information presented does not constitute financial, investment, trading or other type of advice and is solely the opinion of the author.

According to indicators, the buying pressure behind AXS is drying up. Momentum and structure remain bullish.

Axie Infinity [AXS] Note the 138% gain from January’s swing low to swing high at press time. The coin’s performance implies that the mood in the bull camp is euphoric. However, there are signs that buyers are running out of ammunition.

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bitcoin [BTC] The $23,000 level continues to hold at press time, and further gains appear likely. Bullish sentiment can also spur AXS higher. The question remains – will buyers get the proper pullback to take long positions?

Inefficiency intersects with Fibonacci retracements, but will it fall this far south?

Axie Infinity Surges Above $10 and Could Push Higher Without Notable Retracement

Source: AXS/USDT on TradingView

Momentum for AXS is strongly bullish in January. It broke the market structure on the daily chart and turned bullish on Jan. 9, when the price rallied to close the daily session at $7.32. The most recent lower high was $7.25 on December 22.

In early 2023, OBV saw a sharp rise. This suggests heavy buying, with a breakdown in market structure reinforcing a bullish bias. A set of Fibonacci retracement levels are plotted based on the bullish move.

How much is 1,10,100 AXS worth today?

The pullback from $10.2 almost reached the 61.8% retracement at $7.52 before moving higher to $13.94. OBV did not move higher, although RSI did. This is worrisome for the bulls, as the rise has not been backed by real buying pressure.

Examination of shorter time frames such as four hours shows the $11.22-$11.4 area as support. The $10.8-11 area is a short-term area of ​​liquidity and prices may revisit it before moving higher. A four-hour close below $10.8 could see a pullback to $9.3.

Spot CVD falls while open interest signals bullish

Axie Infinity Surges Above $10 and Could Push Higher Without Notable Retracement

Source: Coinalyze

While OBV failed to make higher highs along with price, spot CVD indicated bearish pressure. The continued downtrend in CVD in recent days suggests that there is steady selling pressure behind the asset. However, open interest is showing bullish intentions as prices move higher.

Funds flow into the market, and the funding rate is positive, showing bullish sentiment. While the bears are not out yet, the lack of strong bidding power by the bulls could be a concern.

With a bullish structure and momentum, AXS traders can trade with the trend. A positive reaction around the $10.8-$11.2 area could be used to re-establish long positions in case of a pullback.

Information source: compiled from AMBCRYPTO by 0x information.Copyright belongs to the author, without permission, may not be reproduced

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