• Altcoin resumed its decline, approaching a month-long consolidation range that it previously broke out of.
• Technical indicators revealed a strongly bearish market

Following a week-long downturn, one during which the altcoin dropped significantly by 15.22%, AXS market bulls made a comeback. Their efforts pushed the asset up by 10.22% in the last 24 hours, offering a glimmer of hope.

However, further analysis by AMBCrypto suggested that Axie Infinity [AXS] remained bearish at press time. In fact, the prevailing downturn could deepen, with the altcoin likely to fall further on the charts now.

A return to consolidation

AXS has been on a steep decline lately, losing 48.67% of its value between 4 December and 20 December. Its latest daily gains followed a rebound off a resistance zone—now acting as support. At the time of writing, the altcoin seemed to be heading back towards the lower consolidation range.

However, this bounce brought AXS into a supply zone between $6.78 and $7.156, where strong selling pressure could push the price lower.

AMBCrypto’s analysis suggested that if the selling pressure intensifies, AXS may re-enter the consolidation phase it exited in November, leading to further price declines.

On the other hand, if the supply zone fails to hold, the asset could rise to another higher supply zone before resuming its downward trajectory.

AMBCrypto’s technical analysis reaffireds the prevailing bearish trend, pointing to sustained weakness in the market.

Bears take control

At press time, AXS remained under significant bearish pressure. The Bull Bear Power (BBP) indicator, which evaluates market control, showed that market bears have been driving the ongoing price dro

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Author: Olayiwola Dolapo