In the realm of play-to-earn cryptocurrencies, Axie Infinity (AXS) dominated the 2021 bull run, boasting a meteoric rise that saw its price peak at $165. This surge positioned AXS above many major cryptocurrencies. However, the subsequent fall was drastic, with the price plunging to just above $7, leaving investors baffled. This article delves into the current status of AXS and its potential future movements.
Will AXS See an Upswing?
A prominent crypto analyst has taken an in-depth look at Axie Infinity (AXS), a notable play-to-earn altcoin. The analyst suggests that AXS has the potential for a substantial upward movement. Ali Martinez, sharing insights on social media platform X, highlighted the possibility of AXS forming an inverse head and shoulders pattern in its weekly chart.
Martinez believes that based on this technical pattern, AXS could rise to the neckline at $13 and possibly surge further to $22. The inverse head and shoulders pattern typically signals a bullish trend, indicating investor confidence in accumulating at higher prices.
Currently, Axie Infinity is trading at $8.08, reflecting a 4% increase in the last 24 hours. Should it reach the $22 mark, it would represent a staggering 194% rise from its current price.
Will Ethereum Price Rise?
In addition to AXS, Martinez analyzed Ethereum (ETH) and noted a less bullish short-term outlook. The Tom DeMark (TD) Sequential Indicator on ETH’s daily chart signaled a potential sell-off, suggesting a possible 5% correction.
The TD Sequential Indicator is used by traders to forecast potential trend reversals based on the closing prices of the last 13 bars or candles. Despite market volatility, Ethereum is currently trading at $3,721.
Key Insights for Investors
- Axie Infinity may potentially form a bullish inverse head and shoulders pattern.
- If AXS breaks the neckline at $13, it could surge to $22, indicating a significant price increase.
- Ethereum may face a short-term correction, as indicated by the TD Sequential Indicator.
- Investors should stay vigilant for trend reversal signals in the crypto market.
As market dynamics remain unpredictable, both Axie Infinity and Ethereum present intriguing prospects for investors. Understanding technical indicators and market trends is crucial for making informed investment decisions.