KEY TAKEAWAYS
Axie Infinity (AXS) fell to its lowest price since 2021.
The next closest horizontal support area is at $1.50.
Can AXS bounce before reaching this support?
On April 16, the Axie Infinity team announced the start of the Origins s12 postseason, which will conclude with the Elite 8 tournament on April 21.
The positive Axie Infinity news failed to move the AXS price, which has fallen without retracement since December 2024.
A token unlock of over 5% of the supply on April 12 exacerbated the AXS price decline.
With AXS falling to its lowest price since 2021, let’s examine the charts and see where the decrease might end.
AXS Price Crashes
The weekly time frame AXS analysis shows that the price has fallen 98% since its all-time high in November 2021.
Axie Infinity’s price briefly rallied in July 2023 but failed to sustain its upward movement, beginning another downward trend in February 2024.
After creating a lower high in December, the price accelerated downward, breaking from the $4.40 horizontal support area.
This week, the AXS price fell to a four-year low of $2.10 and shows no signs of slowing down. The next closest support is at $1.50.
The wave count suggests the decline is part of wave three in a five-wave downward movement (red) that started in March 2024.
Technical indicators are bearish. The Relative Strength Index (RSI) is falling and is below 50.
The Moving Average Convergence/Divergence (MACD) is also decreasing and is negative.
So, the weekly outlook suggests the AXS price will continue to move downward.
Can AXS Bounce?
The daily time frame AXS analysis does not offer much hope for a significant bounce.
The AXS price has fallen inside a descending parallel channel since its December 2024 high.
Despite several bounces at the support trend line, the AXS token price has failed to break out from the channel and is trading in its lower portion, a sign of a bearish trend.
Furthermore, technical indicators do not show any signs of a bullish trend reversal.
Neither the RSI nor the MACD has generated bullish divergences, which are prerequisites for significant bounces.
So, the AXS price will likely continue falling inside the parallel channel until it reaches the $1.50 horizontal support area.
New Lows Incoming
The AXS price has trended bearishly since its all-time high.
The breakdown below $4.40 confirmed the bearish trend, suggesting new lows are likely.
Axie Infinity’s price could continue falling until it reaches at least the $1.50 horizontal support area.
