- Axie Infinity (AXS) is about to fill a fair value gap (FVG) within the $102.6 – $79.2 range.
- On-chain metrics back the 15% fall prediction.
- A swing high beyond $116.2 will confirm a possible trend shift and cancel the bearish case.
Axie Infinity sees its price contemplating a steep decline. AXS might see a slight bump in market value before triggering the crash.
Axie Infinity to Fill Inefficiencies
Axie Infinity enjoyed a seamless sail to $106.1 from $79.2, translating to a 33% gain. The sudden surge formed a price inefficiency known as the fair value gap (FVG). Assets fill these gaps when prices trade back to the range. That is what is happening with Axie Infinity’s current price action. For now, the alt has plummeted almost halfway, and market players can see AXS hitting FVG’s bottom in the incoming trading sessions.
From its current price position of $93.5, market players can witness AXS losing another 15%, exploring $79.2. Further downswings will see the token retesting the barrier at $71.59, translating to a 23% fall.
The GIOM model backs the decline toward $79.2 or $71.5 as it indicated the closest support level located at $70.94. At this zone, nearly 865 addresses bought 1.63 million Axie Infinity tokens. That way, enthusiasts can expect this gaming token to witness notable plunges soon.
Furthermore, daily active addresses in the Axie Infinity platform have plunged substantially within the past 90 days, to 764 from 6,264. This 88% drop shows investors invested in Axie Infinity and are not interested in AXS at its current price levels.
If AXS witnesses buying momentum increase for a 6-hour candle close beyond $106.5, it will show that market creators are gathering liquidity before catalyzing a price crash. Meanwhile, Axie Infinity requires a swing high past $116.2 to invalidate the downward narrative.
For now, AXS seems primed for losses. Furthermore, the downbeat mood in the global markets supports the bearish narrative. Bitcoin failed to surge past the psychological area of $50,000, trading in red at the moment. If such trends persist in the upcoming trading sessions, Axie Infinity will gain momentum to drive the gaming token lower.
By TongRoRo – shutterstock.com