- Indicators confirm fading buying impetus behind AXS.
- The structure and momentum stayed bullish.
Axie Infinity saw staggering surges of 138% since its January swing levels until this publication. The coin’s performance indicates euphoric sentiment within the bulls’ camp. Still, some suggestions indicated that buyers were weakening.
Bitcoin continued to maintain its price moves at around the $23K mark during this writing, and more upside appeared possible. The bullish bias might push the alternative tokens higher. However, will AXS buyers see an impressive pullback to execute long positions?
Inefficiency Confluences with FIB Retracement; Can We See Dips that Far Lower?
AXS retained massive bullish momentum in January. The altcoin broker daily chart’s market structure and switched it bullish during January 9 session, when prices soared to end the trading day at $7.32. the latest lower peak emerged on December 33 at $7.25.
The OBV welcomed 2023 with a massive upward surge. That showed a colossal buying amount and breaking the market structure intensified the bullish stance. Analysts plotted several FIB retracement marks according to the bullish action.
The decline from $10.2 nearly hit the 61.8% FIB retracement of $7.53 before climbing to $13.94. meanwhile, the on-balance volume didn’t soar, whereas the Relative Strength Index did. That worried bulls as the upside rally lacked impressive buying strength.
Evaluating lower timeframes like 4hr indicated support at $11.22 – $11.4. the zone at $10.8 – $11 represented a near-term liquidity territory, and AXS might revisit the area before climbing higher. A 4hr session closing under $10.8 might welcome slides toward $9.3.
Spot CVD Dips While Open Interest Demonstrates Bullishness
While the on-balance volume failed to record higher highs alongside AXS’s prices, the spot CVD exhibited bearish momentum. The continued CVD downtrends in recent days revealed stable selling strength behind the altcoin. Nonetheless, the Open Interest indicated bullishness as it pushed higher.
Capital entered the marketplace, and the funding rate maintained positive to reflect bullish sentiment. Though bears were yet to dominate, the absence of massive bidding power by bulls might be concerning.
Since the momentum and structure stayed bullish, AXS traders might trade with the token’s trend. Positive reactions at $10.8 – $11.2 might offer opportunities to re-enter longs upon pullbacks.