Axelar had a jump in its price over the weekend. On Sunday January 25th the Axelar token went up 20 percent and the daily trading volume of Axelar increased by over twelve hundred percent.
This was a good short term move for Axelar.. The overall market for things, like Axelar is still not doing well.
When Bitcoin went down it made prices go down. This also affected the price of Axelar.
I am looking at the chart and I think the structure is still bearish after the big drop on January 20th. The price going below 0.066 tells us that sellers are still in charge.
The price went up to 0.083 during the weekend rally. It did not close above a key resistance area. This means that buyers are facing pressure, from sellers.
The price getting rejected at this level might not last long. When I look at the higher timeframes I still see that the daily chart and the daily chart has a bearish bias. The daily chart is what I am looking at. It is bearish.
The indicators are giving us a picture. The On Balance Volume has gone up to highs even higher than what we saw in mid-December. The daily Relative Strength Index is above 50, which's a pretty good sign it is neutral to positive. These signals are telling us that the On Balance Volume and the daily Relative Strength Index may help the market recover a bit but traders should still be careful. The Moving Averages have not crossed yet and the bigger bearish structure is still in place so we need to be cautious, with the On Balance Volume and the Moving Averages.
On the smaller time frames the hourly chart is showing some signs of weakness. I drew some Fibonacci levels based on the ups and downs. Now the price of the token is near the 78.6 percent level, which is around 0.072.
The hourly RSI has gone below 50. The token price is, below the 50 period moving average. This could mean the token will go down a bit in the term or the token will have a temporary bearish move. The token is looking a bit weak on the chart and this is what I am seeing with the token.
Traders need to be careful when they make decisions. The big gains we saw over the weekend and the increase in interest might not stick around. The market may go through a period where it stabilizes and then drops a bit before the people who buy can try to drive the price up. The price of the token may find some support around the 0.065 to 0.072 range. This is something that traders should pay attention to. If the token price drops below 0.065 it could mean that the token is still in a trend, which is what the token has been doing when the people who sell are, in control of the token market.
In the few days swing traders should wait for the price to settle down before they buy. If the price goes up a little when it is, near 0.072 that might be a time to buy.. On the other hand traders should not rush and should wait until they are sure the price is going back up before they put their money in. Swing traders should keep an eye on the price. Look for clear signs that it is recovering before they make a move.
In conclusion Axelar showed strong short-term gains over the weekend but faces resistance from sellers. Daily and hourly charts suggest some caution. Traders can watch support near 0.065 to 0.072 and look for gradual recovery. A drop below 0.065 could indicate further losses. Short-term momentum may be bearish but with careful observation some buying opportunities could appear if the price reacts positively at key levels.
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