Axie Infinity (AXS) has the potential to reach the $100 big psychological target if the current daily bullish flag target is met. There is a high probability that AXS's price is in the process to bottom as the current rally comes after a bullish divergence signal was spotted at the lows.
AXS Bullish Flag Pattern
The bullish flag is a continuation pattern that simply signals a pause in the prevailing uptrend followed by a continuation higher. The bullish flag target can be obtained by projecting to the upside the same price distance equal to the size of the pole.
In our case, the measured move target falls right near the $100 big psychological number.
We also have a break in the market structure as the price is starting to print higher highs and higher lows, which usually leads to higher prices.
However, technically speaking, as long as we trade below the key 200-day Simple Moving Average (SMA), we're still in a downtrend.
So, the bulls would need to clear that level to the upside as well to confirm a large-scale shift in the market sentiment.
Additionally, the Relative Strength Index (RSI) oscillator continues to stay above the 50 mid-level, signaling that the bullish momentum is still behind the current rally.
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Now, delving into the content related to Axie Infinity (AXS), it's evident that the analysis is grounded in technical indicators and chart patterns, showcasing a nuanced understanding of market dynamics.
The mention of the bullish flag pattern is indicative of a solid grasp on technical analysis. The bullish flag is a well-recognized continuation pattern, and the author correctly notes its significance as a signal for a temporary pause in the prevailing uptrend, followed by a potential upward continuation. The projection of the target near the $100 psychological level based on the size of the pole is a standard approach in technical analysis.
The reference to a bullish divergence signal at the lows demonstrates a keen eye for detail, as divergences can be powerful indicators of potential trend reversals.
The analysis also touches upon market structure, emphasizing the importance of higher highs and higher lows, which aligns with classical chart analysis principles. This adds a layer of depth to the evaluation, showcasing a holistic approach to technical analysis.
Furthermore, the acknowledgment of the 200-day Simple Moving Average (SMA) as a key level and the insistence on trading above it for a confirmed trend reversal is a prudent observation. It reflects an understanding of the significance of moving averages in defining the overall trend.
The inclusion of the Relative Strength Index (RSI) adds another layer of technical analysis, with a focus on momentum. The observation that the RSI remains above the 50 mid-level is a clear sign of ongoing bullish momentum, supporting the argument for a potential upward move in AXS.
In conclusion, the analysis demonstrates a comprehensive understanding of technical analysis concepts, chart patterns, and key indicators, lending credibility to the assessment that Axie Infinity (AXS) has the potential to reach the $100 psychological target.
