- Axie Infinity price coils inside an ascending triangle, hinting at an imminent breakout.
- Investors need to be aware of smart money traps before a 17% rally to $27.41.
- A four-hour candlestick close below $17.98 will invalidate the bullish thesis for AXS.
Axie Infinity price has been hovering above a support floor for quite some time. This price action since May 12 has resulted in a bullish consolidation, hinting at a breakout rally.
Axie Infinity price ready to explode
Axie Infinity price set a swing low at $16.20 after the LUNA-UST crash that pummeled the crypto market. Since then, AXS create three equal highs at $23.19 and roughly five higher lows. Connecting these swing points using trend lines shows the formation of an ascending triangle.
This technical setup forecasts a 17% upswing to $27.41, obtained by adding the distance between the first swing high and swing low to the breakout point at $23.19. However, this price action will not be a swift move followed by a flip of the overhead barrier.
There is a possibility that the smart money will try to manipulate Axie Infinity price action by pushing the price below the ascending triangle’s hypotenuse. In some cases, this move could even allow AXS to retest the $17.98 barrier.
Impatient investors might get trapped on the wrong side of the trade only because they are too early. So, market participants need to wait for a breakout and retest of $23.19 or wait for a revisit of $17.98 to long AXS.
The run-up from $17.98 to $27.41 would constitute a 52% gain and is likely where Axie Infinity price will set a local top.
AXS/USDT 4-hour chart
On the other hand, if Axie Infinity price produces a four-hour candlestick close below $17.98, it will create a lower low and invalidate the bullish thesis for AXS. In such a case, AXS could crash 37% and revisit the $11.30 support level.