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After declining for more than two weeks, it seems today like the bearish period might have ended in the cryptocurrency market. It started to reverse higher earlier today after most major cryptos found support at some important levels and now they are looking bullish, particularly Axie Infinity and Polkadot crypto coins.
Axie Infinity Analysis – The $50 Zone Turns from Resistance into Support for AXS/USD
Axie Infinity token bounces off the support zone around $50
Axie Infinity token was extremely bullish during July and August, surging from $4 to around $95 until the first weeks of September. The 20 SMA (gray) providing support on the daily chart during that period shows that the pace of the uptrend was quite strong.
The 50 daily SMA (yellow) turned into support after the 20 SMA was broken and AXS/USD was trading sideways inside a range for nearly 2 weeks, until the breakout happened, as the range between the 2 MAs was getting tighter and eventually closed.
So, we saw a major retreat in the last two days, but it seems like the major zone around the $$50 level which acted as a resistance area for some time has now turned into support. This crypto coin has bounced off that area and at some point was up nearly 30% off yesterday’s lows. So, it seems like buyers were waiting for the price to reach that support zone and today they jumped in. Now, Axie looks bullish again and we’re holding to our AXS/BTC signal.
Polkadot Analysis – The 200 SMA Establishes as Support
The 200 SMA held the pullback for the second time
Polkadot turned really bullish since late July, increasing from above $10 to almost $40, which means a nearly 400% appreciation in less than two months. It even reversed higher after the flash crash in the market two weeks ago, pushing above the early September high.
The 20 SMA (gray) was acting as support on the daily chart, but eventually, the bearish sentiment in the crypto market caught up with this cryptocurrency, and during the crash of the last two days, DOT/USD pushed below this moving average. But, the 200 SMA (purple) which held as support during the flash crash two weeks ago held again yesterday. Today we are seeing a bounce off this moving average and now the price has moved below the previous support at $28, so buyers are in charge at the moment here too.
DOT/USD
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