Axie Infinity (AXS) and Smooth Love Potion (SLP) Show Signs of Life After Long Downtrend



Axie Infinity (AXS) and Smooth Love Potion (SLP) have both broken out from their respective descending resistance lines, but are still facing horizontal resistance.

AXS has been increasing since reaching a low of $11.85 on June 18. While the price broke out from a descending resistance line shortly afterward, it has failed to initiate a significant upward movement. 

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AXS accumulates below resistance

Rather, AXS has made several attempts at breaking out above the $18 horizontal resistance area, all of which have so far been unsuccessful. However, resistances get weaker each time they are touched, so an eventual breakout seems likely. 

This possibility is also supported by the daily RSI, which has increased above 50. 

If a breakout occurs, the next resistance for AXS would be at $28.

The two-hour chart shows that the decrease after the rejection has been contained inside a descending parallel channel. Such channels usually contain corrective movements. 

Moreover, it seems that the AXS decrease has taken the shape of an A-B-C corrective structure. Giving waves A:C a 1:1 ratio would lead to a low of $15.81. This would also take it to the support line of the aforementioned channel.

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So, the most likely scenario seems to be a short-term decrease before another eventual attempt at breaking out.

SLP breaks out

Technical analyst @_Mayb3e tweeted a chart of SLP which shows a short-term breakout. 

Since the tweet, SLP has resumed its upward movement and broken out from a longer-term descending resistance line. Next, the closest resistance area is at $0.006. 

If SLP manages to break out above this area, the rate of increase could greatly accelerate due to the lack of further overhead resistance.

The daily RSI supports this possibility, since it has increased above 50 and does not show any bearish divergence.

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