Axie Infinity is up more than 40% since the beginning of the month and seems poised for further gains.
Key Takeaways
- Axie Infinity has reached a new all-time high of $60.
- Further buying pressure could catapult this cryptocurrency toward $78.
- AXS must hold above $53.60 for the bullish outlook to be validated.
Axie Infinity finally burst through resistance and reached a new all-time high after a brief consolidation period. Now that AXS entered price discovery mode, another leg up seems imminent.
Further Gains On Axie Infinity’s Horizon
The 280% run-up that Axie Infinity experienced between July 20 and July 27 seems to have created the flagpole of a bullish flag pattern that formed on this cryptocurrency’s 12-hour chart. Meanwhile, the symmetrical triangle that developed following the massive upswing created the pattern’s flag.
A recent spike in buying pressure allowed AXS to slice through the flag’s upper trendline at $45. The breakout has seen this cryptocurrency gain over 40% in market value to reach a new all-time high of $60.
If buy orders continue to pile up, Axie Infinity could rise another 30% toward $78. This target is determined by measuring the flagpole’s height and adding that distance to the breakout point.
It is worth noting that AXS needs to hold above $53.60 for the bullish flag to remain as the governing pattern behind its price action. If sell orders were to pile up around the current price levels leading to a breach of the underlying support, then an increase in profit-taking may come into play.
Under the unique circumstances where Axie Infinity loses $53.60 as support, it would be prone to a steeper decline toward $45 or $38.50. Moving past the $38.50 demand wall could serve as confirmation of a trend reversal from bullish to bearish.