Axie Infinity token AXS price was pumping. Why and what next ?
Yesterday there was an unpleasant situation on the AXSUSDT chart.
In 3 minutes, the price jumped from $7 to $19 on Binance. This pump was picked up by trading bots, and perhaps traders on other exchanges also managed to react. For example, on WhiteBit, the price rose to $14
The pump occurred because the purchases were made using API keys, at least 3 Binance users who traded using the API key on Skyrex a crypto trading bot platform.
Moreover, the trading balance of one of the users was in the region of $1 million.
CZ CEO Binance on Twitter reported that their team is clarifying the situation, and the user with the largest trading deposit confirmed and thanked him for the help.
Automation of trading is a convenient thing, many cryptocurrency exchanges implement a copy trading service for this, and it is clearly safer than trading through the API. At least because the responsibility for security lies with the cryptocurrency exchange with a large security department and appropriate tools, and when using an API key to trade on third-party platforms, the likelihood of hacking or compromise is much higher.
Here is the AXSUSD price chart on the 3-day time frame. As you can see, the AXS price has been in a falling channel for more than a year.
Yesterday's "manipulations" with the price of the Axie Infinity token formed the Japanese candlestick "Inverted hammer", which in normal situations serves as a trend reversal signal. Whether this pattern can be taken into account in this situation is a controversial issue.
It can be assumed that perhaps in the future a reversal pattern "Head and Shoulders" will form. The global target for growth of this pattern is around $60.
We believe that the first safe purchases of AXS are possible if and when the AXSUSDT price can consolidate above $10.
The final reversal of the downtrend to the uptrend will come only after the price of AXSUSDT can gain a foothold above $19 (even during yesterday's artificial pump could not break this level)
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In 3 minutes, the price jumped from $7 to $19 on Binance. This pump was picked up by trading bots, and perhaps traders on other exchanges also managed to react. For example, on WhiteBit, the price rose to $14
The pump occurred because the purchases were made using API keys, at least 3 Binance users who traded using the API key on Skyrex a crypto trading bot platform.
Moreover, the trading balance of one of the users was in the region of $1 million.
CZ CEO Binance on Twitter reported that their team is clarifying the situation, and the user with the largest trading deposit confirmed and thanked him for the help.
Automation of trading is a convenient thing, many cryptocurrency exchanges implement a copy trading service for this, and it is clearly safer than trading through the API. At least because the responsibility for security lies with the cryptocurrency exchange with a large security department and appropriate tools, and when using an API key to trade on third-party platforms, the likelihood of hacking or compromise is much higher.
Here is the AXSUSD price chart on the 3-day time frame. As you can see, the AXS price has been in a falling channel for more than a year.
Yesterday's "manipulations" with the price of the Axie Infinity token formed the Japanese candlestick "Inverted hammer", which in normal situations serves as a trend reversal signal. Whether this pattern can be taken into account in this situation is a controversial issue.
It can be assumed that perhaps in the future a reversal pattern "Head and Shoulders" will form. The global target for growth of this pattern is around $60.
We believe that the first safe purchases of AXS are possible if and when the AXSUSDT price can consolidate above $10.
The final reversal of the downtrend to the uptrend will come only after the price of AXSUSDT can gain a foothold above $19 (even during yesterday's artificial pump could not break this level)
_____________________
Did you like our analysis? Leave a comment, like, and follow to get more
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