Bitcoin‘s price saw an upswing just before the U.S. stock market opening, which was quiet due to the Christmas holiday. The macroeconomic front appears calm for the week, suggesting minimal external market influences in the coming days. Meanwhile, the popular altcoin AXS Coin has surged nearly 30%, trading at $10.2 at the time of the report. This increase in altcoin demand seems to be a result of Bitcoin sales, with altcoins generally following Bitcoin’s lead, which is now sitting back as altcoins rise.
The excitement around AXS Coin has been building since it broke out from a long-term descending resistance trend line in October. This resistance had been in place for a staggering 700 days, and its breach indicated an end to the downward trend. The recent 30% rally confirms the bullish sentiment.
AXS Coin’s price today hit a new 2023 high at $11.05, marking a 160% increase from the previous month, mirroring Bitcoin’s gains since the beginning of the year. However, if AXS Coin is to outperform Bitcoin, it requires further upside movement.
With the Relative Strength Index (RSI) and price both rising, investors are aware that this could signal a continuation of the rally, barring any major disasters such as SEC ETF rejections or sudden massive Bitcoin sell-offs.
Network data had previously indicated a revitalization in the Axie Infinity ecosystem, with an increase in user numbers. A new update announced for the week adds to the reasons for AXS Coin’s double-digit surge, which may not be as surprising as it seems.
Elliot Wave analysis suggests we are in the third leg of a five-stage upward movement, historically an opportunity for larger and faster rallies. The RSI increase on the daily chart confirms this analysis, suggesting a higher peak is likely. Potential targets for the third wave are $13 and $17.20, but if AXS Coin fails to surpass $13, it could retract to $7.50.