Axie Infinity (AXS) Flirting With Buying Zone Around $127

Axie Infinity’s (AXS) price action has been bearish so far this week amid some slight attempts to resume the bull-run above the 200-period simple moving average at the H4 chart.

As the metaverse’s discussions are on the air across the crypto community, the focus is shifting towards the so-called metaverse tokens like AXS.

Liquidations of long positions at this stage are common and such behavior could lead the cryptocurrency to test a bottom around $120, where the price could find a critical demand area. The 200 SMA has been acting as a dynamic resistance across the board.

Metaverse’s Bulls Around The Corner

The sell-off continues, but it doesn’t mean directly that the crypto is poised to turn bearish, at least until the end of the year. Given the technical outlook in the short term, buyers could appear on the scene.

Eventually, the AXS token could keep the golden crossover of the moving averages alive to eye new highs, with a first critical barrier set at $148.

Once the price manages to crack above $144, the altcoin could be on its way to hitting the $156 level in a first degree, followed by the $160 zone and then by the $164 handle.

Bull-Run Above $148

But a pessimistic scenario suggests that AXS could extend the bearish stance below $120 once it makes a two-candlestick closure at the H4 chart. If that happens, the token could be on its way to reaching the $112 zone in a first degree, followed by the $100 psychological level.

The RSI indicator keeps treading the oversold waters, implying that it had bottomed at this stage.

Meanwhile, as long as the play-to-earn crypto holds the $120 level, the demand area will remain alive and could help boost the bullish price action. Therefore, a bullish construction should be made with at least two higher lows and higher highs in the structure to achieve it in the near term.