Axie Infinity has put forth quite some effort in creating a giant bearish reversal pattern since the July of last year- something that could send the prices down by around 95%.
This pattern has been dubbed the inverted cup and handle, and is usually identified by its large crescent shape that subsequently follows quite a modest upward retracement. This retracement then resolves itself after the price breaks out over the rising channel- which is then followed by yet another break below the cup as well as the neckline support of the handle. At the same time, with a technical analysis rule in place, the inverted cup and handle inevitably lead the price to the level at length which is quite equal to the maximum distance between the top and support of the structure.
Axie Infinity Seems To Bring Out A Huge Bearish Pattern
The price rally of Axie Infinity during the last half of 2021, which was then followed by a complete wipeout in 2022, did create quite a crescent shape trend- which looked like an inverted cup. Also, the price rebounded by around 50% from the local bottom on the 18th of June of $11.82 did create another inverted handle. Therefore, one could assume that the technicals of AXS do appear to be quite skewed to the downside, which then breaks below the inverted handle range with a breakdown target of $1, down about 95% from the price on the 24th of July.
This extremely bearish outlook of Axie Infinity does appear in the wake of quite a depressive trend throughout the rest of the crypto market. Nevertheless, AXS has also suffered due to the crumbling vision of AXS to sustain a gamily platform that would pay its users to check the games out. Also, bad press that includes a $600 million hack in the early part of the year has also seemingly dampened the demand for the AXS, which then serves as a governance token.