Axie Infinity [AXS] experienced a significant surge in trading volume on Sunday, August 31st, leading to a 10% rally in its price. The spike in trading volume was attributed to the increased activity in popular altcoins such as Ethereum [ETH] and XRP on South Korean exchanges like Upbit and Bithumb.
On that day, AXS recorded a daily trading volume of $423 million, a remarkable 15x increase from the average volume of $30 million in the previous week. Despite this surge, it was uncertain whether the rally would be sustained in the following days.
The price action of Axie Infinity has been confined within a range of $2.1 to $3.42 since April, with the midpoint at $2.76. During the Sunday rally, AXS saw a 10% increase, closing at $2.52. Although the price briefly touched $2.8, it was unable to break through the mid-range resistance, indicating a potential downside towards the $2.1 support level.
Technical indicators such as the A/D indicator and the Awesome Oscillator suggested a bearish sentiment, despite the temporary bullish momentum. Resistance levels at $2.51, $2.65, and $2.77 were identified as potential barriers for AXS, with a sustained rally requiring strong buying pressure.
The liquidation heatmap highlighted the $2.4 area as a short-term liquidity cluster, which could provide some support against further downside. However, the more significant demand zone at $2.1-$2.2 was considered a stronger level for potential buying opportunities.
In conclusion, while the surge in trading volume boosted Axie Infinity’s price on Sunday, the overall market sentiment and technical indicators pointed towards a challenging road ahead for AXS. Traders should exercise caution and monitor key support and resistance levels for potential trading opportunities.
Please note that the information provided in this article is not financial advice and should be considered as the writer’s opinion.