AXL Up 3.41% as Short-Term Rally Fueled by Technical Indicators

On SEP 1 2025, AXL rose by 3.41% within 24 hours to reach $0.2885. This short-term rebound comes despite significant declines of 817.41% in seven days, 333% in a month, and over 5474% in the past year.

The uptick in AXL’s price coincided with a notable shift in key technical indicators. The Relative Strength Index (RSI) showed signs of stabilizing after falling into oversold territory, while the 50-day moving average crossed above the 200-day line in a bullish signal known as a “golden cross.” These signals have historically been associated with short-term market rebounds, prompting renewed investor interest in the token.

The recent trading pattern suggests a potential reversal in momentum after months of sustained bearish pressure. Analysts have noted that AXL’s chart has formed a classic “V-shaped bottom,” a pattern often seen in assets experiencing a swift recovery following a sharp decline. The breakout from a descending channel further supports the argument for a short-term reversal, particularly as on-chain data shows increased long-position activity in the last 72 hours.

Backtest Hypothesis

A proposed backtesting strategy focuses on capitalizing on AXL’s recent technical behavior by implementing a mean-reversion approach. The strategy triggers a long position when the RSI falls below 30 and the 50-day moving average crosses above the 200-day line. A stop-loss is placed at the 20-day low, and a target exit is set at the 20-day high, with a maximum holding period of 14 days. This framework aims to capture quick rebounds during periods of oversold conditions, leveraging historical volatility patterns. The test would need to be run over multiple cycles to assess consistency in returns and risk-adjusted performance.