Axie Infinity is the talk of the crypto town today, and for good reason.
This thing has gone in a straight line higher and doubled from our entry when we were buying it last week.
Now, AXS is trading at a market cap of $9B putting it among one of the most valuable video game entities in the world.
For today's post, we wanted to step back and revisit why we've been so obnoxiously bullish over the last few months, and take you behind our thinking of why we've put it on the buy list six separate times in the last few months...
Here's a snippet of our first post covering Axie when we were buying it in July:
There aren’t many coins breaking out to all-time highs right now, but AXS is one of them.
We just had to break the rules with this one – it’s currently trading at a tiny market cap of $750M, so it’s $250M shy of joining our Crypto universe. So keep in mind that this one is much smaller than what we typically deal with.
Here’s the play; we only want to own AXS if it’s above 11.60. If it’s below, then it’s someone else’s problem.
If AXS can do that, we can be long with a target up near 17.70.
And here was our chart back in July:
Pretty hilarious to see a $17 target for a coin trading at $150 today, right?
We point this out because when names completely ignore our Fibonacci extensions, that's information. The strongest of trends don't conform to overhead supply, the demand at play completely overpowers bears
Markets trend. So if something's going up, there's a higher likelihood that it's going to continue to go up than for it to completely collapse.
Another reason why we were buying Axie was that it reclaimed its all-time highs months before most other cryptos. This only reiterates our view of buying the coins that are above their first-half highs - those are the names showing the relative strength.
Here's a few of them:
Going back to our old Axie chart, you can see that relentless strength when compared to the rest of the altcoins. In fact, AXS was already on a straight line higher compared to its peers before it broke out.
That really stood out to us back then and still does to this day.
Fast forward to a few days ago, we were seeing the exact same characteristics with AXS breaking to new highs relative to Bitcoin. Whenever a coin is breaking to all-time highs relative to its peers before it does so in absolute terms, that's a hint of what's to come.
Whether we're dealing with stocks, commodities, or cryptocurrencies, relative strength is truly king.
Axie is just one of countless examples of its efficacy when used in markets.
Now with that said, how are we approaching it moving forward in the coming weeks?
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