The prices of AXSUSD have remained relatively stable for the past seven days. However, since January, the pair has also traded sideways, failing to break out of the long-term support level of $48 numerous times.
The sideways market for the AXSUSD pair came after an impulsive bearish move, which began on January 27, that saw the coin losing over 40 per cent of its value.
However, the prices are anticipated to go up after Axie Infinity devs announced the release of another governance token for their Ronin Blockchain. The Ronin governance token will work on the same platform as Axie Infinity shards and will be used for staking and participating in community proposals. The introduction of the Ronin governance token will positively impact Axie Infinity, which has been plagued with inflation in the past, resulting in AXS prices falling.
However, the positive news has been met with outrage from some Axie Infinity players, who pointed to another similar asset on the platform called Smooth Love Potion (SLP). The asset has dropped in prices from trading at $0.36 in May to the current prices of $0.01. They argued against developing RON and favoured propping SLP.
AXSUSD price analysis
AXSUSD opened the markets at $47, reaching highs of $48 and lows of 45. The crypto entered a long-term bearish trend on November 8, 2021, and has seen traded within a descending channel.
However, the prices have stalled recently, and since January 22, the markets have been moving sideways. This is after the prices hit a long-term support level of $48. Since then, the prices have struggled to establish a trend, and the pair has traded along the support levels.
Looking at the daily chart, the prices have recently bounced from the lower trendline of a regression trend. The prices have also failed to break the long-term support levels of $47 and instead traded sideways. Based on these facts, I expect the support levels of $47 to hold, which will result in a bullish move of the cryptocurrency. During the bullish move, I also expect the prices to hit $75 and $81 resistance levels.
However, my bullish analysis will be invalidated if the prices move further below the $48 support level. It will mean that the support levels have already been broken, and the long-term bearish move will continue.