Axie Infinity has reached a new all-time high after breaking out of a continuation pattern.
Key Takeaways
- Axie Infinity has risen by more than 24% in the last 24 hours.
- The formation of a bull flag projects a new rally towards $100.
- The bullish outlook should prevail as long as AXS holds above $66.
Axie Infinity has seen its market value appreciated by 2,105% over the past eight weeks. Although the rising price action suggests that a spike in profit-taking is underway, the technicals point to more gains on the horizon.
Axie Infinity Makes New All-Time Highs
Axie Infinity looks unstoppable as it recently made a new all-time high of $82. The crypto gaming token has surged by more than 24% in the last 24 hours, gaining over 16 points in market value.
The recent upward price action seems to have derived from the break of a bullish flag on the 4-hour chart. The 85% rally that took place between Aug. 8 and Aug. 11 created the pattern’s flagpole, while the descending channel that developed right after formed the flag.
If buy orders continue to pile up, AXS could surge by another 30% towards $100. This target is determined by measuring the flagpole’s height and adding that distance to the breakout point.
As long as the 50-four-hour moving average continues to hold, the optimistic outlook will remain intact. However, failing to do so will drastically increase the odds for a significant correction.
A break of the $66 support barrier would likely lead to a downswing toward the 100-four-hour or 200-four-hour moving average. These interest areas currently hover around $53 and $42 respectively.
Axie Infinity’s rapid ascent comes amid a period of mania some are calling “NFT summer.” In addition to the NFT gaming boom, which has also been evidenced by Decentraland’s growth, animal avatars, generative art, and other non-fungible assets have exploded in popularity in recent weeks. Trading volumes on NFT marketplaces like OpenSea have soared, with prices for many assets hitting record highs.