Axie Infinity (AXS) has been moving downwards since reaching an all-time high price of $29.2 on July 15.
The token bounced on July 20 and is currently in the process of moving towards the $23.30 resistance area.
All-time high and drop
AXS has been increasing at a rapid pace since June 22. In a span of 23 days, the token increased by 921%. The upward movement culminated with an all-time high price of $29.20 on July 15.
However, AXS has been moving downwards since. On the same day it reached the all-time high, a shooting star, which is known as a bearish reversal candlestick, often found at the top of a movement.
The downward movement continued until July 20, when a low of $14.1 was reached. The low was made just above the 0.618 Fib retracement support level at $13.
AXS is in the process of creating a bullish engulfing candlestick.
However, technical indicators are showing signs of weakness. While the MACD is positive, it has been moving downwards for five straight days. The RSI has crossed below 70 and the Stochastic oscillator is very close to making a bearish cross.
The shorter-term two-hour chart shows that AXS has broken out from a descending resistance line that had been in place since the July 15 all-time high.
The breakout is supported by both the MACD & RSI. The former is moving upwards, nearly crossing above 0, while the latter has already moved above the 50 line.
If the upward movement continues, the two closest resistances are at $20.7 and $23.5. The latter is the 0.618 Fib retracement resistance level.
AXS wave count
Cryptocurrency trader @CryptoTony_ outlined an AXS chart, stating that the token is currently in wave four of a bullish impulse.
It does seem that AXS began a bullish impulse on May 24. If so, it is now in wave four (orange) of a bullish impulse.
The sub-wave count is given in black. We can see that wave three has extended, and AXS is currently in the B portion of an A-B-C corrective structure (black).
Therefore, AXS would be expected to increase towards the 0.618 Fib retracement resistance area at $23.3 before falling once more, completing the corrective structure of wave four.