Axie Infinity (AXSUSD): Eyeing a Key BreakoutOn the 12-hour chart for AXS, we've completed Wave 2 at the $5.82 level. Since then, we've been in a continuous upward phase, forming higher lows three times and now a higher high. This pattern suggests continued upward movement.
There are two key areas to watch: the 12-hour supply zone starting at $10.31 and the 12-hour demand zone at $7.50, which aligns with the current trendline. We expect the trend to continue upwards, particularly if the price touches the demand zone at $7.50, providing a potential entry point. Our target on the upside is the supply zone at $10.31. Whether the price moves beyond this level is uncertain and will require monitoring. The low volume between these zones suggests that the price could rise rapidly once it starts moving.
Analyzing the monthly VWAP for AXS, we see that the December VWAP provided resistance at a high of $8.70. The price tagged this level perfectly before falling back down. We believed the price might dip further to similar levels and he did. The demand zone started at $7.50 and extends down to $7.25. For us, the absolute maximum level to watch is the December VAL at $7.23, where we expect to find support. However, it's possible that the price could dip slightly lower to clear the liquidity from the last dip in early June.
Once this liquidity is taken out, we anticipate a potential push higher, aiming to break above the December VWAP. This setup provides a clear structure for potential entry points and targets based on current resistance and support levels. In summary, we are looking for an entry around the $7.50 demand zone, with an initial target at the $10.31 supply zone. Further movement will depend on market conditions and volume dynamics at that time.
