Axie Infinity value has been on a steep downtrend since early November after several failed bids to bounce back. This freefall placed AXS below a crucial retracement level that could lead to a further correction.

It achieved an all-time high of $166 in the first week of November, but it has since faced profit-taking and pullback due to a broader weakness of the cryptocurrency market, FX Street noted. This has led to a 24-percent drop to $125, shattering the retracement level at $129. It has since continued its free fall.

Axie Infinity Price Downtrend Expected to Continue

Despite this, however, investors can anticipate a relief bounce that may get rejected at the $129 or the $131 to $135 supply zone, FX Street emphasized. Not being able to break through this zone will lead to a further drop, possibly crashing to the $102 range.

Its price action is perceived to be similar to the behavior of Bitcoin and Ethereum's prices. There are large gaps between weekly candlesticks or price movements and the weekly Tenkan Sen or the midpoint between the highest and lowest prices of the asset over nine periods.

Given that these gaps are resolved within four to six periods, Axie Infinity is expected to suffer a near-immediate drop. On Axie Infinity's chart, the weekly Tenkan San is at $106.50. Going back to that level would lead to a 30 percent drop from the present weekly open or the average price at which a cryptocurrency opens for the week. This also means a big potential for a steeper decline, per FX Street.

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Axie Infinity's volume profile, which shows its trading activity over a specified time period and price levels, indicates that a slide below $120 could cause a crash to the $85 levels. If the price drops below the high volume node at $120, AXS price is seen to drop further.

Even while the gaps between the weekly candlesticks and the weekly Tenkan Sen are likely to be resolved, it doesn't happen all the time. As such, AXS price could consolidate as it waits for the Tenkan Sen to move up so that the gap would be addressed. This would lead to an invalidation of a forecasted 30 percent slump.

All Is Not Lost for Axie Infinity Breakout: Possibility of a Surge

AXS have shown resilience leading to the $118 and $114 support levels, and this led to other forecasts of an upswing, a separate FX Street post said. Around these levels, investors can expect AXS prices to see buying interests.

Even with its precarious situation, closing at around the $131 to $135 supply zone could hint at a possible surge. While this is a bullish trend, a turnaround of a bearish sentiment could only happen if the Axie Infinity price could reach a daily close above $139.

As of Friday, Axie Infinity price has risen 5.8 percent to $132.11, according to CoinGecko real-time figures--a sign of good things to come for AXS.

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