- AXL’s recovery hit over 40% in October
- However, the altcoin still faces short-term headwinds amid reduced market interest
As a seasoned researcher with over a decade of market analysis under my belt, I find myself intrigued by Axelar’s [AXL] recent surge and subsequent headwinds. The 40%+ recovery in October was indeed impressive, pushing AXL to multi-month highs. However, the price rejection at the Q2 support-resistance level of $0.88 suggests that the road ahead might not be as smooth as we’d like.
During October, Axelar, similar to Chainlink, experienced a significant surge of more than 40%, contributing to a wider market recovery in the cryptocurrency sector.
As an analyst, I’ve observed a significant upward momentum for AXL that has led it to a multi-month peak, surpassing the previously established Q2 support level. This raises the intriguing query: Will AXL continue its progression further?
AXL’s uptrend status
Starting from late September, AXL has exhibited a pattern of reaching successively higher peaks and lower valleys, which is a bullish market setup that encourages long-term investment as the price ascends.
However, at press time, AXL faced price rejection at the Q2 support-cum-resistance level of $0.88.
If the technical indicators are showing signs of excessive heat, it could mean that a significant, prolonged recovery may be postponed. This is more likely to happen if Bitcoin doesn’t manage to surpass the $70,000 threshold in the near future.
If AXL’s correction continues, it may reach the 38.2% Fibonacci level before regaining strength and breaking the Q2 support. In this case, the level might provide an attractive opportunity for re-investment.
Instead, asserting a strong recovery in Q2 could potentially boost the chances of reaching $1.29 on the price chart. Achieving the short-term bullish goal at $1.12 would bring an additional 20% profit opportunity if attained.
Whales reduce exposure
A piece of evidence indicating a low likelihood of AXL overcoming the obstacle on the road was the decrease in whale activity.
Since mid-October, whales have reduced their extended holdings (long positions). This potential reduction could account for the price range that followed. Additionally, the decreasing disparity between the large investors (whales) and smaller investors (retail) also suggests this trend.
On the other hand, if there’s a change in direction with the metric, it might boost the likelihood of AXL breaking through its previous Q2 resistance level.
Read Aexlar [AXL] Price Prediction 2024-2025
Additionally, the declining Open Interest (OI) rates also painted a short-term headwind for AXL.
By mid-October, the Open Interest (OI) was close to $20 million. But by the time of publication, it had dropped significantly to about $10 million.
This highlighted reduced market interest by nearly 50% for the altcoin. Worth noting though that this could change if BTC reverses its recent losses and surges above $70k.
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2024-10-25 11:35