Date: Sat, Nov 23, 2024, 07:35 AM GMT

The cryptocurrency market is shining with excitement as Bitcoin's (BTC) dominance begins to wane, dropping from a recent peak of 60.40% to 59.39%. This shift comes on the heels of BTC achieving a new all-time high of $99,504 just yesterday, marking a 46% rally in the past month. With Bitcoin cooling off slightly, altcoins are beginning to shine, with major tokens like Cardano (ADA) and XRP leading the charge.

Among these, Axie Infinity (AXS), a standout from the 2021 bull run, is re-emerging as a key player. AXS has surged by over 12% today, currently trading at $6.59 with a market capitalization of $1.01 billion.

Source: Coinmarketcap

After a prolonged consolidation, the token seems poised for a significant breakout, according to technical indicators and chart patterns.

Gears Up for a Major Breakout

Crypto analyst @WorldOfCharts1 recently shared an optimistic analysis of AXS on social media, highlighting the token's potential for exponential growth. The analysis notes that AXS is trading near the apex of a large falling wedge pattern—a historically bullish setup. Breaking out from this formation could see AXS rally by 4-5x, as it reclaims critical levels of support and enters a new uptrend.

Source: @WorldOfCharts1 (X)

The chart provided by the analyst emphasizes a potential breakout zone around the $7 mark. A clean break above this level could send AXS soaring toward targets in the $25-$32 range, representing gains of up to 500%.

Is a Big Rally on the Horizon?

The technical structure of AXS is aligning with broader market conditions that favor altcoin rallies. Historically, falling wedge patterns often precede massive price movements, as they reflect a compression of price volatility before a breakout.

A breakout above the key level of $7 could act as a launchpad for an even bigger rally. This level serves as a psychological and technical barrier, and clearing it would likely attract significant buying interest. Such a move could set AXS on a path to test higher resistance levels, potentially igniting a strong bullish trend.

If momentum persists beyond $7, the token's rally could gain exponential strength, validating projections of a 4-5x increase from its current levels and positioning AXS as one of the market's top performers in the coming months.

Conclusion

Axie Infinity (AXS) is positioned for a potential breakout, with a chart structure and market sentiment that strongly hint at further upside. If it clears the key resistance zone at $7, AXS could become one of the standout performers in the ongoing altcoin rally. While the technicals suggest a 4-5x move, investors should remain cautious and conduct their own research before entering the market.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.

Also Read: Polygon (POL) Gains Bullish Momentum With Double Digit Gains: Is The Rally Started?