Critical Support and Resistance Level

AXS demonstrates bullish momentum as it surpasses a descending trendline but faces resistance at a key supply zone. The shift of a former resistance to support indicates potential upward movement, yet a close below this level might trigger a decline towards the $5.5 demand zone, a critical juncture for a bullish reversal.

12/4/20231 min read

AXS chart displaying successful breach of descending trendline, encountering resistance at a supply
AXS chart displaying successful breach of descending trendline, encountering resistance at a supply

AXS has successfully breached its descending trendline, indicating a notable bullish momentum.
However, it encountered resistance at a key supply zone, which curtailed its upward trajectory, redirecting the price action downwards.
Notably, a previously established resistance zone has been overcome and has now transformed into a support level. This transition suggests potential for an upward price movement. Nonetheless, if the price were to close below this pivotal area, it would likely precipitate a further decline towards the established demand zone, situated at approximately $5.5. This zone could act as a critical point for a potential bullish reversal, as market reactions at this level could fuel an upward price trajectory.