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Crypto: Axelar (AXL) awaiting a rebound Analysis of April 2, 2024

Thu 02 May 2024 ▪ 5 min of reading ▪ by Family Trading Partnership
Investissement

After hitting an all-time high at $2.7, Axelar experienced a 67% decline. Let’s analyze the future prospects for the AXL price together.

Logo Axelar au centre d’une explosion entre un ours rouge et un taureau bleu enragés.

Axelar (AXL) Situation

After marking a low at $0.31, the Axelar price soared in less than a month to $0.75. Shortly thereafter, the AXL price used the $0.62 support to bounce back and reach a new peak at $1.30. Following that, the cryptocurrency’s price stabilized, marking a low at $0.90. Axelar then started a new uptrend, leading it to its historical high at $2.72. Unfortunately, in two months, sellers absorbed the entire rise to retest the $0.90 support once again.

At the time of writing, Axelar is trading around $1.15. It appears that the cryptocurrency has recently benefited from buyer interest at this level. It is interesting to add that AXL seems to be stabilizing around the psychological threshold of $1, where there is a significant value area, in addition to the 200-day moving average. This supports the hypothesis of a potential rebound underway. Nonetheless, it is worth remembering that such a drop has naturally called into question the bullish trend that the cryptocurrency had been on. Indeed, AXL is still below its 50-day moving average and demonstrates a still fragile dynamic, as can be seen through the oscillators and its price itself.

Daily AXLUSD Chart
Daily AXLUSD Chart

The current technical analysis was carried out in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of independent traders active since 2017. You can find Lives, educational content, and mutual assistance around financial markets in a professional and warm atmosphere.

Focus on derivatives (AXLUSDT)

The liquidation heatmap for the past two months shows that AXL/USDT has recently rebounded from a liquidation zone around the psychological threshold of $1. This zone seems to have sparked buyer 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 range between $1.66 and $1.81. Below the current price of the cryptocurrency, it is also important to note a notable zone between $1.07 and $1.15. If the market approaches these levels, we could witness a massive triggering of orders, thus potentially increasing the cryptocurrency’s volatility. These zones therefore represent major points of interest for investors.

AXLUSDT Liquidation Heatmap (3 months)
AXLUSDT Liquidation Heatmap (3 months)

Hypotheses for Axelar’s Price (AXL)

  • As long as the Axelar price manages to stay above $0.90, we can anticipate breaking through the $1.30 barrier. The next resistance to consider if the uptrend continues would be $1.60. Reaching this level could pave the way to $2, and subsequently, allow us to contemplate a return to AXL’s ATH at $2.72. At this stage, this would represent an increase of over 134%.
  • If the Axelar price does not hold above $0.90, we could consider the support of buyer interest in the $0.80 zone. The next level to consider if the downtrend continues would be around $0.61. At this stage, it would represent a drop close to –46%.

Conclusion

In the span of four months, Axelar recorded a spectacular 770% increase, reaching an all-time high at $2.71. In early March, the cryptocurrency sparked seller interest, quickly bringing it back to its last support at $0.90. Currently, the cryptocurrency appears to have stabilized above this important threshold, generating renewed buyer interest. However, the negative influence of the bitcoin downturn and unfavorable technical movements raise questions about the future of AXL’s price. Thus, it will be crucial to closely observe price reactions to different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Lastly, let’s remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly due to more fundamental factors.

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Family Trading avatar
Family Trading

Family Trading est une Communauté de traders a compte propre active depuis 2017 offrant Lives, contenus éducatifs et entraides autour des marchés financiers dont celui des cryptomonnaies avec à ses côtés Elie FT, investisseur et trader de passion sur le marché crypto.

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