Axelar [AXL] Price Prediction 2021-2022: Can AXL Move Forward Now?

AXL's uptrend status. Since late September, AXL has been making higher highs and lowers – A bullish market structure perfect for long positions

Cross-chain communication protocol token Axelar [AXL] noted a multi-month high in October. This came as the broader market noted a recovery from the September lows.

However, AXL’s price action seemed to hit a wall at a Q2 support level, a development that might hinder further gains. At the same time, technicals showed the token to be overheated.

This might have contributed to a delay in any extended recovery, especially if Bitcoin failed to crack the $70k mark in the short term.

AXL 4-hour chart bullish, but…

Four-hour time frame showed AXL making higher highs and lows since late September. This bullish market structure was ideal for long positions as the price noted a surge.

At press time, however, AXL faced price rejection at the Q2 support-cum-resistance level of $0.88.

Technicals also flashed overheated signals, suggesting that any further recovery might be delayed. Especially if Bitcoin failed to crack the $70k mark in the short term.

That being said, AXL might extend its correction to the 38.2% Fib level before gaining momentum to crack the Q2 support. If so, the level could offer a discounted re-entry point.

However, a firm reclaim of the Q2 support could increase the odds of it hitting $1.29 on the charts. The immediate bullish target of $1.12 would offer extra 20% potential gains if hit.

Whales reduce exposure

Another data point that suggested low odds of AXL clearing the overhead roadblock was declining whale interest.

Whales have trimmed their long positions since mid-October. This might explain the range formation seen afterward. The declining Whale vs. Retail Delta showed this too.

However, a reversal on the metric could increase the chances of AXL cracking its former Q2 support-turned-resistance level.

Leggiero su volatilità e liquidità

Four-hour AXL derivatives also showed a decline in open interest (OI) rates, which might have contributed to the range formation seen after the Q2 support.

In mid-October, the OI stood at nearly $20 million. However, it had fallen by half to $10 million at press time.

This highlighted a reduction in market interest by nearly 50% for the altcoin. Worth noting though that this could change if BTC reverses its recent losses and surges above $70k.