Axie Infinity price to trap bears before posting 20% gains

• Axie Infinity price action tests support on the monthly S2 at $51.90.
• AXS price looks set for a rebound as the low from Sunday holds.
• Expect bears to get trapped in the false break below S2, getting squeezed out.

Axie Infinity (AXS) looked set for another leg lower, but bears are getting trapped on their entries on the break of the monthly S2 again. The low from Sunday still holds for now and could be the start of a squeeze on the bears that could go all the way up towards $60.36, holding 20% gains. Vital for this setup is that indices in both Europe and the US can go out with a green print.

Axie Infinity bear trap depends on green numbers in the equity space

Axie Infinity bulls have a tough nut to crack with bears still present and squash every bullish attempt marked in the Relative Strength Index (RSI) with an uptick away from the oversold area. But the joke could be on the bears for once, as bears are until now still unable to firmly break below the S2 and historical support at $60.36. Even the low from Sunday is not yet in sight for a test, so bulls are doing their part of the work to keep momentum present. 

AXS price thus could simply be taking a breather for the day, trapping bears in the process, and now see bulls coming in yet again for the US session, lifting price back above $51.90. Should earnings this week further surprise the upside, expect the high of Sunday to be tested and break, squeezing out further any bears positions. This should pave the way for hitting $60,36 by the end of this week.

AXS/USD daily chart

With earnings season, some significant tech stock is set to publish its earnings this week, which could still hold some downside surprises, triggering further selloff inequities. Expect cryptocurrencies to see that correction being extended into their asset class, with AXS dipping below last week’s low around $45 and opening up a correction towards $26.70. That would mean another 45% of losses as both a stronger US dollar and risk-off sentiment would weigh in on the price action.