AXS has dropped from $12 to $8 as bears dominate the market. The prevailing inflation could further exert selling pressure and offer bears more leverage in the next few days/weeks. As a result, bears could sink AXS below the descending channel’s boundary of $8.40 and retest the $7.71 support. An extremely bearish scenario could see AXS drop to $6.65 or $5.70.
Therefore, cautious bears could wait for a pullback to retest the lower channel’s boundary to confirm a further downtrend before making moves. A candlestick close above the channel’s lower boundary will invalidate the aforementioned bearish thesis. Such a move could offer bulls a recovery chance, especially ifdefends the $22K psychological level. The target for bulls would be the channel’s upper boundary or the 38.2% Fib level . However, bulls must clear the hurdles at 23.6% Fib level and 50-period MA .
The RSI declined to the oversold territory, reinforcing bears’ leverage. In addition, the Average Directional Index was above 25 and the slope turned north, confirming a strong downtrend. However, the increasing divergence between the ADX and price could also indicate a slowing downtrend.The Funding Rate for AXS/USDT pair remained disturbingly negative over the past few weeks, indicating limited demand and largely bearish sentiment in the derivatives market.
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Source: TorontoStar - 🏆 60. / 55 Read more »