- Altcoin resumed its decline, approaching a month-long consolidation range that it previously broke out of.
- Technical indicators revealed a strongly bearish market
Following a week-long downturn, one during which the altcoin dropped significantly by 15.22%, AXS market bulls made a comeback. Their efforts pushed the asset up by 10.22% in the last 24 hours, offering a glimmer of hope.
However, further analysis by AMBCrypto suggested that Axie Infinity [AXS] remained bearish at press time. In fact, the prevailing downturn could deepen, with the altcoin likely to fall further on the charts now.
A return to consolidation
AXS has been on a steep decline lately, losing 48.67% of its value between 4 December and 20 December. Its latest daily gains followed a rebound off a resistance zone—now acting as support. At the time of writing, the altcoin seemed to be heading back towards the lower consolidation range.
However, this bounce brought AXS into a supply zone between $6.78 and $7.156, where strong selling pressure could push the price lower.
AMBCrypto’s analysis suggested that if the selling pressure intensifies, AXS may re-enter the consolidation phase it exited in November, leading to further price declines.
