AXSUSDT Fails to Hold $1.35 After Bearish Engulfing Pattern

Summary
• Price surged above $1.35 before consolidating near $1.31–$1.32 as key support.
• Momentum shifted mid-day, with RSI signaling oversold conditions late in the session.
• High-volume breakout attempts above $1.35 failed, suggesting potential reversal risks.
• Volatility remained elevated, with Bollinger Band expansion reflecting increased uncertainty.
• A bearish engulfing pattern near $1.35–$1.36 suggests possible near-term downward bias.

Market Overview

Axie Infinity/Tether (AXSUSDT) opened at $1.331 on 2026-02-21 12:00 ET and reached a high of $1.428 before closing at $1.305 on 2026-02-22 12:00 ET. The 24-hour volume was approximately 1,904,879.85, with a notional turnover of around $2,548,890.00.

Structure & Formations

Price action formed a key bearish engulfing pattern at the top of a short-term bullish trend, suggesting exhaustion at $1.35–$1.36. The asset appears to have found a temporary support zone between $1.31 and $1.32, which could be tested in the near term. A long upper shadow on a key $1.36–$1.38 candle suggests rejection at that level.

Moving Averages and Volatility

Short-term 20/50 EMA lines for the 5-minute chart crossed bearishly, reinforcing a potential near-term downtrend. Daily 50/200 EMA lines remain bullish, but the 200 EMA at around $1.28–$1.29 now provides a critical support target. Bollinger Bands widened significantly during the midday rally, reflecting elevated volatility.

Momentum and Indicators

The RSI reached overbought territory above 70 around $1.38–$1.40, but has since dropped into oversold territory near $1.30–$1.31, hinting at possible short-covering or a bounce. The MACD line turned negative in the afternoon, suggesting weakening bullish momentum.

Volume and Turnover

Volume spiked sharply between $1.35 and $1.42, with a peak of 180,679.8 at $1.355–$1.36. Despite this, price failed to hold above $1.35, indicating a potential divergence between volume and price. Turnover followed a similar pattern, with the largest block at $1.365–$1.37.

Fibonacci Levels

Recent 5-minute swings point to key retracement levels around $1.345 (38.2%) and $1.336 (61.8%), which may act as resistance or support. On the daily chart, a 61.8% retracement of the last major upwave is near $1.30, now being tested.

In the next 24 hours, a close below $1.30 could signal a deeper pullback toward $1.28–$1.29, while a bounce above $1.32 could rekindle short-term bullish momentum. Traders should remain cautious of potential order-block retests and divergences at key levels.