AXSUSDT Breaks Key Levels, Fails to Rebound From Oversold RSI

Summary
• Price dropped from $1.465 to $1.301, forming bearish engulfing and bear trap patterns.
• 24-hour volume surged past 1 million, confirming downward momentum.
• RSI signaled oversold conditions near 1.301 but failed to trigger a reversal.
• Bollinger Bands showed expanding volatility during early ET hours.
• A 61.8% Fibonacci retracement level at $1.354 appears to act as key resistance.

Market Overview

Axie Infinity/Tether (AXSUSDT) opened at $1.394 on 2026-02-06 12:00 ET, peaked at $1.465, and closed at $1.304 by 12:00 ET on 2026-02-07. The 24-hour volume totaled 2,589,448.47 and turnover reached $3,526,434.88, reflecting heightened bearish activity.

Structure & Formations

Price carved out a bearish continuation pattern with a bear trap near $1.354 and a bearish engulfing pattern near $1.414. A key 61.8% Fibonacci retracement level at $1.354 has repeatedly capped upward attempts, reinforcing its role as a critical psychological barrier.

Moving Averages

Short-term 5-minute moving averages (20/50) crossed bearishly during the decline from $1.465 to $1.301. On the daily chart, the 50-period MA appears to be trending downward, suggesting a bearish bias in the near term.

MACD & RSI

MACD showed bearish divergence, with the line dipping below the signal line during the price drop. RSI reached oversold territory near $1.301 but failed to drive a rebound, suggesting that selling pressure remains strong and buyers are hesitant to step in.

Bollinger Bands

Bollinger Bands displayed a period of volatility expansion during the late ET hours, especially around the $1.414 high. Price has remained below the 20-period lower band for much of the session, indicating continued bearish pressure.

Volume & Turnover

Volume surged past 1 million during the sharp selloff in the afternoon ET hours, confirming the bearish move. Notional turnover also spiked during the decline, showing strong conviction in the downward move. However, volume has been thin near the current level, suggesting a lack of immediate reversal signals.

The price may test support near $1.291 over the next 24 hours, but without a surge in buying volume, further downside into the $1.28–$1.27 range could emerge. Investors should remain cautious of the prevailing bearish momentum and potential for a continuation of the decline.