Axie Infinity (AXS) Price Crashes to Four-Year Low, Will It Bounce?

On April 16, the Axie Infinity team announced the start of the Origins s12 postseason, which will conclude with the Elite 8 tournament on April 21.

The Axie Infinity (AXS) price has crashed to its lowest level since 2021 as the token faces increased selling pressure.

Key Levels to Watch

The weekly time frame analysis of the Axie Infinity (AXS) price shows that the token has fallen by 98% since its all-time high, reached in November 2021, at $800.

After briefly rallying in July, at the $10 resistance level, and failing to sustain its upward movement, the price started another downward trend in February.

This trend led to the creation of a lower high at around $4.40, which the price broke from this week, increasing the bearish pressure.

This week, the AXS price fell to a four-year low of $2.10 and shows no signs of slowing down. The next closest support is at $1.50, which the price could test if it manages to break through the lower boundary of the parallel channel.

The wave count suggests that the decline is part of wave three in a five-wave downward movement (shown in red), which started in March 2024.

The Relative Strength Index (RSI) is falling and is below 50, while the Moving Average Convergence/Divergence (MACD) is also decreasing and is negative.

So, the weekly outlook suggests that the AXS price will continue to move downward in the coming weeks.

Can AXS Bounce?

The daily time frame analysis does not offer much hope for a significant bounce.

The AXS price has been falling inside a descending parallel channel since its December 2024 high.

Despite several bounces at the support trend line, the AXS token price has failed to break out from the channel and is trading in its lower portion, which is a sign of a bearish trend.

Furthermore, technical indicators do not show any signs of a bullish trend reversal.

Neither the RSI nor the MACD has generated bullish divergences, which are prerequisites for significant bounces.

So, the AXS price will likely continue falling inside the parallel channel until it reaches the $1.50 horizontal support area.