Weekly potentials
AXS has been falling since hitting an all-time high of $166.09 in November. So far, the downtrend has led to a low of $11.85 in June 2022, representing a 92% drop since the all-time high.
So far, the price has dipped below the 0.5 Fib retracement support level and validated it as resistance afterward. However, it is trading very close to the 0.618 Fib retracement support level at $10.
This is an important horizontal level, as it previously provided resistance in May 2021 (red icon). So, due to the confluence of both horizontal and Fib support levels, this zone could help the price bounce back.
Although this support zone is close to the support level, the technical indicators are not up yet. While the weekly RSI reached an all-time low of 30, it has not yet produced any bullish divergence nor reached the oversold zone.
Daily RSI creates bullish divergence
The daily chart shows that the price has been moving along a descending resistance line since May 5. Most recently, the line caused a rejection on July 9 (red icon), creating two successive daily bearish candlesticks.
A bullish development is that the daily RSI generated a bullish divergence between May 14 and June 16. However, this was not a catalyst for a significant upward movement. If the divergence line (green line) fails to hold, new lows are expected.
Future movements
The six-hour chart shows that the price has broken below an ascending parallel channel. Such channels often contain corrective movements, which means that a break below is likely to happen. Also, this shows the prevalent trend is downward, as bounces are considered corrections.
With the use of external 1.27 Fib retracement level on the most recent bounce, the next low is targeted to be at $10. This level also coincides with the long-term support area aforementioned.
(Reference: beincrypto)
Disclaimer: This article is for reference purposes only, not investment advice.
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