Axie Infinity (AXS) appears to be stabilizing at a key long-term demand zone after a prolonged multi-year decline, with recent technical analysis suggesting the token may be approaching a critical inflection point.
At the time of writing, AXS is trading at $1.23, up 0.45% over the last 24 hours, with daily trading volume of $67.8 million and a market capitalization of approximately $208 million, according to data from CoinMarketCap.
Axie Infinity Stabilizes Amid Long-Term Decline
On March 4, crypto analyst Crypto Patel presented a detailed chart analysis for X (formerly Twitter), in which he explained what he believes is a potential long-term reversal structure for AXS.
According to his two-week chart analysis, AXS has been moving within a multi-year descending channel since the bull market cycle high, when the price reached nearly $166. The subsequent correction erased almost 99% of its value, pushing the token into a high-timeframe demand zone between $0.75 and $0.45.
This region, he explains, represents a potential long-term accumulation area, but only “provided AXS can maintain a two-week closing basis above the critical $0.45 support level.”
AXS has made a strong recovery from its zone lows over the last two months, indicating an early sign of a possible bottom for other GameFi tokens with high market capitalization.
Axie Infinity Faces Crucial Price Levels
Levels of upside liquidity are near the $2, $5, and $10 levels, which align with previous distribution/breakdowns. A breakout above the mid-channel resistance on the two-week chart will change market structure and open the gates to these levels.
The process of invalidation is obvious. A decisive move below $0.45 over a two-week timeframe would undermine the case for a reversal and suggest continued long-term downside pressure.
A retest of the old all-time high remains technically possible in the long term, but this will require a major change in overall crypto conditions, renewed adoption of GameFi assets, and continued inflows.
Short-Term Indicators Still Show Fragility
Although the time-frame is higher, short-term indicators are still cautious. RSI is at 41, below 50, indicating bullish momentum is not yet dominant.
The MA Ribbon signals bearish pressure as the price is currently trading below the 20 SMA at $1.32184 and the 50 SMA at $1.30176, which is significantly lower than the 100 SMA at $1.63497 and the 200 SMA at $1.61145.
For the MACD indicator, the values remain slightly negative. The MACD is at -0.08045, and the signal is at -0.08240. The histogram remains at 0.00195, indicating a slowdown in selling pressure. The momentum remains low for AXS to change the trend.
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Axie Infinity Rally Hinges on User Activity
Market participants are keeping an eye on major cryptos like Bitcoin and Ethereum, and altcoins are only recovering when risk appetite is restored for digital assets.
The long-term prospect of AXS depends on the performance of Axie Infinity’s ecosystem and the state of GameFi as a whole. Any positive developments in user activity or ecosystem updates could be a boon for its potential recovery beyond speculation.
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