Axelar [AXL], a blockchain protocol similar to Chainlink [LINK] that enables cross-chain communication, experienced a significant surge of over 40% in October amidst a broader market recovery.<\/p>\n
This notable rally propelled AXL to its highest level in several months, surpassing a previous Q2 support level below $1. This raises the question \u2013 What’s next for AXL?<\/p>\n
Starting from late September, AXL has been establishing higher highs and lower lows \u2013 indicating a bullish market trend favoring long positions as the price continued to climb.<\/p>\n
However, currently, AXL is encountering resistance around the $0.88 level, which previously acted as a support level in Q2.<\/p>\n
Given the overheated signals from technical indicators, a robust upward rally might be delayed, especially if Bitcoin struggles to breach the $70k threshold in the near term.<\/p>\n
It’s possible that AXL could undergo a correction towards the 38.2% Fibonacci level before gathering enough momentum to breach the Q2 support level, potentially presenting a favorable re-entry point for investors.<\/p>\n
Nevertheless, reclaiming the Q2 support level could enhance the likelihood of AXL reaching $1.29 on the price charts. Targeting $1.12 in the short term could yield an additional 20% in potential gains if achieved.<\/p>\n
An important metric indicating challenges for AXL to overcome its current hurdles is the diminishing interest of large traders. Whales have been scaling back their long positions since mid-October, potentially contributing to the subsequent consolidation phase observed.<\/p>\n
The decline in the Whale vs. Retail Delta further confirms this trend and suggests a need for a shift in sentiment to clear the previous Q2 support-turned-resistance level.<\/p>\n
Moreover, a decrease in Open Interest (OI) rates serves as a temporary obstacle for AXL. In mid-October, the OI reached nearly $20 million but has now halved to $10 million. This indicates a 50% reduction in market participation with regards to the altcoin.<\/p>\n
However, it’s worth acknowledging that this situation could change if Bitcoin reverses its recent downtrend and makes a substantial move above $70k.<\/p>\n
Disclaimer: The views expressed in this article are not intended as financial, investment, or trading advice and remain solely the author\u2019s perspective.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Axelar [AXL], a blockchain protocol similar to Chainlink [LINK] that enables cross-chain communication, experienced a significant surge of over 40% in October amidst a broader market recovery. This notable rally propelled AXL to its highest level in several months, surpassing a previous Q2 support level below $1. This raises the question \u2013 What’s next for<\/p>\n","protected":false},"author":1,"featured_media":28603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-28602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/28602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/comments?post=28602"}],"version-history":[{"count":2,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/28602\/revisions"}],"predecessor-version":[{"id":28605,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/28602\/revisions\/28605"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media\/28603"}],"wp:attachment":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media?parent=28602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/categories?post=28602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/tags?post=28602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}