After marking an all-time high at $2.7 Axelar suffered a 67% decline. Let's analyze together the future prospects for the AXL price.
Status of Axelar (AXL)
After hitting a low point at $0.31, the price of Axelar soared in less than a month towards $0.75. Shortly after, AXL price relied on $0.62 to rebound and reach a new peak at $1.30. Following this, the price of the cryptocurrency stabilized, marking a low point at $0.90. Axelar then began a new wave of rise, bringing it to its all-time high at $2.72. Unfortunately, in two months, sellers absorbed all this increase to return to test the $0.90 support once again.
As of this writing, Axelar is trading around $1.15. It appears that the cryptocurrency has recently benefited from buying interest at this level. Interestingly, AXL appears to be stabilizing around the psychological threshold of $1, where a significant area of value lies, in addition to the 200-day moving average. This supports the hypothesis of a possible rebound in progress. However, it is worth remembering that such a drop naturally called into question the upward trend that the cryptocurrency had been on. Indeed, AXL still remains below its 50-day moving average and demonstrates still feverish dynamics, as can be seen by the oscillators and its price itself.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (AXLUSDT)
The heatmap of liquidations over the past two months shows that AXL/USDT has recently bounced into a liquidation zone around the psychological threshold of $1. This area appears to have attracted buying interest. Today, the most significant areas above the current price are first around $1.30 and $1.40. At higher levels, it is also relevant to mention the $1.50 zone, as well as the area between $1.66 and $1.81. Below the current price of the cryptocurrency, it is also important to note a notable area between $1.07 and $1.15. If the market approaches these levels, we could see a massive triggering of orders, potentially increasing the volatility of the cryptocurrency. These areas therefore represent major points of interest for investors.
Assumptions for the price of Axelar (AXL)
- As long as the price of Axelar manages to remain above $0.90, we can anticipate a break of $1.30. The next resistance to consider, if the upward movement continues, would be $1.60. Reaching this level could open the door to $2, and subsequently, would allow us to consider a return to AXL's ATH at $2.72. At this point, that would represent an increase of more than 134%.
- If the price of Axelar does not remain above $0.90, we could consider support for buying interest in the $0.80 zone. The next level to take into account, if the bearish movement continues, would be around $0.61. At this stage, this would represent a drop close to – 46%.
Conclusion
In the span of four months, Axelar saw a spectacular rise of 770%, reaching an all-time high of $2.71. In early March, the cryptocurrency saw some selling interest, which quickly brought it back to its last support at $0.90. Currently, the cryptocurrency appears to have stabilized above this important threshold, attracting renewed interest from buyers. However, the negative influence of the decline in bitcoin and unfavorable technical movements raises questions about the future of AXL's price. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.
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