AXS/USDT (Axie Infinity), BNB/USDT (Binance Coin), Technical Outlook, Edition #53 (16/07/21)

The rise of the metaverse has given birth to a whole new cryptocurrency industry, and regulators are cracking down on exchanges not operating within the law. Will this impact the industry? Read now!

Note: This article includes a lot of technical jargon, in order to better understand the concepts discussed, it’s recommended you have our “Cryptocurrency List of Terms and Definitions” open to maximise understanding.

The focus of today’s analysis will be on two assets that have been making waves in the cryptocurrency space.

There has been a lot of recent news around these large cryptocurrency projects.

Binance Coin Analysis

Starting with Binance, they have become a target of global regulators for not meeting compliance standards, losing key funding providers and even being blocked in parts of the world like Ontario, Canada. Since Binance and the BNB token are inherently tied together, this recent regulatory crackdown on Binance could impact the price of BNB.

Binance Coin, BNB/USDT - 1 Day (D1)

BNB token appears sandwiched between all three EMA and MA’s, riding the D1 200 MA (BLUE) as support while the D1 20 EMA (GREEN) and D1 50 MA (RED) act as resistance.

This convergence has started to invert due to the constant bearish rejections off the D1 50 MA and, now more recently, the D1 20 EMA. If anything, seller momentum looks ready to step up the heat once bears get their daily close below the D1 200 MA.

Thus, BNB/USDT has been trading bearishly in the short-term and looks to be gearing up for a breakdown to at least USD 240.

Axie Infinity Analysis

AXS has been on an absolute tear recently, as metaverse projects take the limelight thanks to technologies like DAO’s and NFT’s.

After a mouth-watering 1000% rally over the month, AXS finally appears to be cooling off after a brutal rejection of the 2.618 fib extension.

The daily close below at USD 26.62 then sparked a further sell-off which is most likely to test USD 17, where price will kiss the rising D1 20 EMA.


Axie Infinity, AXS/USDT - 1 Day (D1)

Although the age of tokenisation and NFT’s will surely bring a new edge to gaming via creating in-game economies with real-world value, generally, it’s best not to buy near the top of a rally and wait for the asset to cool off to avoid incurring any significant losses. Although, AXS has shown the potential of this space and could carve out a new niche within the industry.

Q’s Conclusion

Based on technical and fundamental factors observed, BNB seems to be on life-support, delaying the inevitable by clinging to USD 300 support which will fail if bears manage a close below the D1 200 MA

Similarly, AXS also looks to be in the middle of a correction and catching knives here is nothing short of insanity. So let it continue to consolidate in the coming days to nail a safer entry.

See you again for the next update.

- q

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