Axie Infinity traders, be prepared! AXS likely to fall to $5.8

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• The market structure of AXS was bearish on the 12-hour chart.
• The momentum remained bearish despite the small bounce from $6.

Axie Infinity [AXS] saw a strong rally earlier in July. On 10 July the bulls managed to drive a rally from $5.7 to $6.9 level before a pullback. The pullback saw a shift in the market structure in mid-July.

Read Axie Infinity’s [AXS] Price Prediction 2023-24

The indicators showed that the bears had the upper hand over the past week. There was a bounce from the $6 level, but it appeared likely that the bulls would be unable to drive prices higher.

The 12-hour chart shows where AXS bulls can look for a price bounce

Source: AXS/USDT on TradingView

Axie Infinity has a bearish market structure on the 12-hour chart after the price fell below the $6.15 level on 24 July. To the south, a bullish order block at $5.75 (cyan) could serve as support once more. Buyers can look for a positive reaction from the bulls before bidding in the $5.65-$5.8 region.

The RSI was below neutral 50 and recently retested it as resistance, highlighting bearish momentum. The OBV saw a dip over the past week as sellers continued to impose themselves on the market. This was reflected in the CMF too, which fell below the -0.05 level on 30 July to signal significant capital flow out of the market.

The 1-hour chart showed that the $5.9-$5.95 zone was a demand zone, and the $6.2 was local resistance. If AXS climbed back above $6.2, or it saw a bullish market structure break after retesting the $5.75 area, the next target for the bulls would be the $6.9 resistance from mid-July.

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The rapidly falling mean coin age showed rising sell pressure

Source: Santiment

The development activity has been high which showed long-term investors have no fears on that front. But there was a massive spike in the 90-day dormant circulation on 25 July. This showed there was a good chance of further selling pressure.

To aid this argument, the daily active addresses and the mean coin age have both trended downward over the past ten days. Combined with the price action, the inference was that Axie Infinity has a good chance of falling to the $5.75 support level.