Axelar [AXL] witnessed a significant increase of 52.8% in its value over a two-week period. While it saw a rise of 12.35% in the last 24 hours, there was a notable dip recently, resulting in a daily gain of just over 5%.
The trading volume of this token, which boasts a market capitalization of $700 million, surged by 78% in the past 24 hours. This sudden surge in activity was fueled by optimistic outlooks, with a potential buying opportunity if it retests the $0.872 level as a support.
Strong Breakout Range for AXL Coin
Axelar broke out of a range pattern that has been forming since mid-June, spanning from $0.434 to $0.738 over a 4-month period. Recent trading activity has seen AXL surpass these highs and then test them as a support level.
The On-Balance Volume (OBV) indicator has been on the rise, indicating increased buying pressure. With this indicator showing a consistent upward trend for the past month, the likelihood of a sustained upward movement is higher.
Although the daily Relative Strength Index (RSI) has not displayed any divergence yet, it is nearing the overbought territory. Traders are advised to monitor this momentum indicator for early indications of a possible price correction.
Resistance levels at $0.872 and $1.1 could pose challenges for the bullish trend. However, considering the strength demonstrated by buyers during and post-breakout, it is probable that AXL coin prices will surpass the $1.1 mark.
Potential Decline in Open Interest?
During the surge of AXL toward $0.8 on October 11th and 12th, Open Interest climbed from $7.44 million to $21.6 million. Following the breakout and subsequent consolidation near the $0.77 level, Open Interest dropped significantly to $12.8 million.
A similar scenario might unfold once the $0.872 level is breached and retested, cautioning traders against succumbing to FOMO and suggesting patience for a more favorable entry point.
Meanwhile, the upward trend in the spot Cumulative Volume Delta (CVD) implies sustained interest in Axelar.
Disclaimer: The views expressed do not constitute financial, investment, or trading advice and are solely the author’s perspective.