The price of Axie Infinity is breaking its levels of support as it descends sharply from its initial position. There are two major reasons responsible for the massive fall – the conditions in the market and a pattern of reversal formed at the top in the period of eight months.

A Second Crash in Sight for the Price of Axie Infinity

There was a head and shoulder set for Axie Infinity on the daily chart. The head and shoulder pattern has three obvious peaks and low swings that bounce off from a support level. The peak at the center is usually taller than the remaining ones and it is called the head. Those peaks on both sides are called the shoulders and they are of the almost same height.

Swing lows are connected with the usage of horizontal the trendline to create a neck. This is generally known as the reversal pattern and it indicates the distribution in assets and then the end of the uptrend. The target of the setup is got by the measurement of the distance between the head’s peak and the neck, then adding it to the point of breakout.

Going by this method, there is a forecast of a 72% drop in AXS to $12.38. For the price of Axie Infinity, its breakdown happened on the 25th of April when its candlestick on the day was close below the neck at $45.22. What followed that movement was a massive sell-off which resulted in the crash of the altcoin by up to 63% in about 16 days.

External Factors

While technical data and events played a huge role, the token’s fall was further sped up by events in the market. Those events include what is going on with the UST and LUNA show off.

Regardless of all those metrics, the price of AXS is almost retesting its set target. Bulls however seem to have a hand of intervention. Therefore, AXS has now rallied by 37% since it had a low swing on the 11th of May, and there is a likelihood of it heading higher.

When it retests its $45.22 barrier, it is likely that the price of AXS would collapse again, only now, it might visit the target that was forecasted at $12.38. It is possible that such a move might create a 52% fall in price and a local bottom would be formed there.

A factor that could be of support to the near-term increase in the price of AXS is the soaring volume of on-chain trade from 233 million to almost 1.03 billion in the course of the past five days. The increase is coming in while there is a decline in the value of the asset, indicating a bullish divergence. Investors can, then, hold on for an initial increase and a shot at the hurdle’s retest.