altFINS

Momentum

Resistance

Axie Infinity

Axie Infinity’s token AXS has seen a nice surge in price over the last 2 days, jumping from $4.2 to around $5. At the time of writing on Friday, September 15, AXIE was trading around the $4.6 mark, representing an increase of approximately 10% in the last 24 hours. 
The most likely explanation for this rapid but potentially short-lived price increase is an unexpected short squeeze. A short squeeze occurs when a heavily shorted asset rapidly rises in price, forcing short sellers to close out their positions and buy back the asset. This spike in buying activity creates positive feedback that further drives up the price. 
In Axie Infinity’s case, the surprise uptick sparked significant short position liquidations, indicating the move was primarily driven by short covering rather than improved fundamentals. While positive for short-term performance, short squeezes are often transitory and can easily reverse once the excessive leverage is flushed out. 
Analyzing the technical picture, AXS had recently broken bearishly out of a Rising Wedge pattern, resuming its downtrend. It subsequently broke below the $4.50 support level that had held up in June, making a Lower Low and confirming the bearish momentum. Now reaching the $4.00 support zone and becoming oversold (RSI near 30), AXS could see a bounce, but the overall trend remains pointed down across short-, medium- and long-term timeframes. 
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Source: <a class="thirstylink" rel="noopener noreferrer nofollow" target="_blank" title="altFINS" href="https://captainaltcoin.com/go/altfins/" data-shortcode="true">altFINS – Start using it today</a> 
Momentum is Bearish as the MACD Line is below the MACD Signal Line and the RSI is below 45. 
Support and Resistance: The nearest Support Zone is $4.50, which AXS broke below, followed by $4.00. The nearest Resistance Zones are $6.00 (previous support), then $7.00, and $10.00. 
In summary, traders should be cautious about interpreting Axie Infinity’s short squeeze-driven gains as a trend reversal. The asset remains in a firmly bearish posture, albeit mildly oversold and due for a potential relief rally. Setting price alerts at key support and resistance zones can help monitor trading opportunities while respecting the dominant downtrend. Fundamentally, signs of expanding adoption and use cases would be required to signal a lasting trend change. 
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The post <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com/axie-infinity-axie-sees-short-squeeze-after-recent-downtrend-herere-the-crucial-levels-to-watch/">Axie Infinity (AXIE) Sees Short Squeeze After Recent Downtrend – Here’re the Crucial Levels to Watch</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com">CaptainAltcoin</a>.

Axie Infinity (AXIE) Sees Short Squeeze After Recent Downtrend – Here’re the Crucial Levels to Watch

CaptainAltcoin

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