Axie Infinity is painting a giant bearish pattern – will AXS price fall another 95%?

Axie's monthly revenue fell more than 98% from its August 2021 peak of $364.4 million .

Altcoin Watch

Axie Infinity (AXS) has been forming a giant bearish reversal pattern since July last year, which could push its prices down another 95% in 2022.

AXS risks a big failure

Nicknamed "inverted cup and handle", the design is identified by its large crescent shape followed by a modest upward tracing. It usually resolves after the price breaks out of the bullish channel, followed by another break below the cup neck and handle support.

Meanwhile, as a general rule of technical analysis, a reverse cup and handle breakout leads the price to the level at the length equal to the maximum distance between the top of the pattern and the support.

The rise in AXS's price during the second half of 2021, followed by its complete erasure in 2022, creates a crescent-shaped trend, which resembles an inverted cut. Additionally, the recent 50% rebound in price from the local low of $11.82 on June 18 forms an inverted handle as shown below.

3-Day AXS/USD Price Chart with inverted cup and handle design. Source: TradingView

So AXS technical data appears to be biased to the downside given that it is below the inverted handle range with a breakdown target of 1 $, about 95% off today's price.

Bad press hurt Axie Infinity

The extreme bearish outlook appears mostly in the wake of a depressive trend elsewhere in the crypto market. Nevertheless, AXS also suffers from the collapse of Axie Infinity