AXS: Amid broader market recovery, this is where you can consider buying in

Disclaimer: The findings of this analysis are the sole opinions of the writer and should not be considered investment advice.

In the past couple of days, Bitcoin^[1] has bounced from $34,800 to test the $39,000 resistance level and actually climbed past it on 25 February. This set up short-term buying opportunities across the market as traders tried to catch the altcoins that made some gains. One of these was Axie Infinity’s token, AXS^[2], which climbed past an area of demand after a deviation to the south.

AXS- 1H

In an article^[3] earlier this week, it was noted that $38 could be revisited- but AXS bulls halted the decline at $42. The $44-$48 demand area has, since then, been flipped back to support, and the price has climbed past the $46 mark as well. This advance has been in lockstep with Bitcoin’s rise from $34,800, showing exactly why BTC is hailed as the king.

In the past 36 hours, the price has formed a rising wedge pattern (yellow). This generally sees the price drop, but in this context, the drop might not be more than a pullback.

Here’s why

The drop below $44.5 did not see a sharp drop- rather, it seemed that on shorter timeframes the price had moved down to coax short positions to be opened, before climbing back above $44.5 and $46. This forced the short positions to be closed, which made AXS rise toward $50.

Therefore the smart players have revealed their hand- after hunting the liquidity below $45, they will likely now push toward the next bands of significant liquidity. These are the $55.5 and $63.25 levels.

Rationale

The RSI and the Awesome Oscillator showed that momentum had been