- AXL’s recovery hit over 40% in October
- However, the altcoin still faces short-term headwinds amid reduced market interest
Axelar [AXL], a protocol that offers cross-chain communication like Chainlink [LINK], surged by over 40% during October amid a broader market rebound.
The aforementioned recovery pushed AXL to a multi-month high and a previous Q2 support below the $1. Hence, the question – Can AXL move forward now?
AXL’s uptrend status
Source: AXL/USDT, TradingView
Since late September, AXL has been making higher highs and lowers – A bullish market structure perfect for long positions as the price surged.
However, at press time, AXL faced price rejection at the Q2 support-cum-resistance level of $0.88.
With technicals flashing overheated signals, a strong extended recovery might be delayed. Especially if Bitcoin fails to crack $70k mark in the short term.
That being said, AXL might extend its correction to 38.2% Fib level before gaining momentum to crack the Q2 support. If so, the level could offer a discounted re-entry point.
However, a firm reclaim of the Q2 support could increase the odds of it hitting $1.29 on the charts. The immediate bullish target of $1.12 would offer extra 20% potential gains if hit.
Whales reduce exposure
Source: Hyblock
Another data point that suggested low odds of AXL clearing the overhead roadblock was declining whale interest.
Whales have trimmed their long positions since mid-October. This might explain the range formation seen afterwards. The declining Whale vs. Retail Delta showed this too.
However, a reversal on the metric could increase the chances of AXL cracking its former Q2 support-turned-resistance level.
Read Aexlar [AXL] Price Prediction 2024-2025
Additionally, the declining Open Interest (OI) rates also painted a short-term headwind for AXL.
In mid-October, the OI stood at nearly $20 million. However, it had fallen by half to $10 million at press time.
This highlighted reduced market interest by nearly 50% for the altcoin. Worth noting though that this could change if BTC reverses its recent losses and surges above $70k.
Source: Coinglass
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
