Altcoins
Axie Infinity (AXS) gains over 45%, but ‘death cross’ fears persist
AXS may form a death cross between its 20-day and 50-day exponential moving averages despite the latest rebound.
Axie Infinity’s native cryptocurrency AXS bounced higher on Se as the market’s focus shifted on its listing across two major crypto trading platforms: Bitfinex and Bitstamp.
The AXS/USD exchange rate surged 15.52%% to $69.86, negating all the losses that it incurred at the beginning of this week. The intraday rally came as a part of an overall bullish retracement that began Tuesday when AXS was changing hands for $48.05.
On the whole, the Avalanche token rebounded by as much as 45.37%.
Crypto assets recover
This Monday, markets were on edge by looming economic trouble in the Chinese property market, surrounding massively indebted yet the largest builder of homes, Evergrande. Fearing a 2008-like housing bubble scenario, investors precautiously shifted their capital out of the stock market and sought haven in the U.S. dollar.
Are Evergrande’s debts denominated in Crypto? pic.twitter.com/YAoqBVx2Rk
— Michael Batnick (@michaelbatnick) September 21, 2021
The crypto market ended up mirroring moves of the global stock markets, with top digital assets Bitcoin (BTC) and Ether (ETH) ending up near their multi-week lows. As a result, other top tokens also fell in tandem, with AXS diving from $63.99 on Monday to as low as $48.05 on Tuesday—a 24.55% price decline.
However, entering the Wednesday and Thursday session, almost all the top crypto assets recovered in sync. So it appears AXS merely tailed the trend. Still, its apprehensively stronger fundamentals, especially the addition of its pairs on Bitfinex and Bitstamp, had it perform better than most of its top rivaling tokens.
HUMAN Protocol, Axie Infinity and Polygon will be listed on Bitfinex!
HMT (ERC-20), AXS (ERC-20) and MATIC (mainnet) deposits are now open. Trading for @human_protocol, @AxieInfinity and @0xPolygon on #Bitfinex will start from 21/09/21 at 9:00 AM UTC⬇️https://t.co/jawz5VuLq8pic.twitter.com/Yk6LT1Ub6E
— Bitfinex (@bitfinex) September 20, 2021
For instance, BTC/USD bounced over 3% in the past 24 hours, whereas AXS/USD’s profits, in the same timeframe, came out to be more than 8.5%.
Technical setup
The latest bout of buying in the Axie Infinity markets has helped to evade potential death cross threatș—for now.
Namely, the AXS/USD’s 20-day exponential moving average (20-day EMA) risks slipping below its 50-day exponential moving average (50-day EMA). As a result, analysts typically perceive a short-term MA closing below a long-term MA as a Sell indicator, dubbed the “death cross.”
For instance, the chart below shows that the previous 20-50 EMA bearish crossover followed up with a 50%-plus price decline.
Offsetting the death cross setup is AXS/USD’s daily relative strength index (RSI), a price-momentum indicator that has just bounced off its nearly oversold level, signaling the pair’s intention to move higher in the coming sessions.
Related: Altcoins see a 35% bounce after Bitcoin reclaims $43,000
The upside analogy receives an additional boost from the psychological support level near $51.90. Traders have lately used the said price floor as their point of entry to Axie Infinity markets, as shown in the chart below.
As a result, slipping below $51.90 could trigger the death cross setup, with the next support target for bears appearing at $36.47, as per the Fibonacci retracement setup. On the other hand, holding above the said price floor could have bulls test $76.59 and $88.98 as their next upside targets.
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