AXL price has risen in the past 24 hours on bullish developments, as Axelar was trending on Google. However, its technical setup remains weak. Will the current momentum help it reverse a multi-month downtrend?

According to data from crypto.news, Axelar (AXL) price rebounded 11% after the project unveiled a major partnership with XRP Ledger, reaching an intraday high of $0.31 on the morning of Sep. 23 (Asian time) before settling at $0.30 at press time.

AXL price has been on a downtrend since hitting an all-time high in March 2024, and despite the recent bounce, the token still remains down 12% from its weekly high and 60% below its highest point this year. 

The daily trading volume for the token almost doubled over the previous day as over 23 million worth of tokens exchanged hands between traders, while its market cap was seated at $317 million.

Despite AXL’s rebound today, price action for the token remains largely subdued due to the broader market downturn that has seen Bitcoin (BTC) visit multi-week lows over the past two days. The total crypto market cap had lost a significant chunk of value during the same timeframe and was still down 2.5% in the past 24 hours at $3.9 trillion as of this writing.

On the daily chart, AXL’s short-term price outlook remains bearish. Notably, the token is trading below all its simple moving averages, with the longer-term averages positioned above the shorter-term ones, a structure traders often interpret as a sign of full bearish control.

At the same time, the Aroon indicator, which is often used to gauge trend direction and strength, shows the Aroon Down at 92.86% while the Aroon Up was at 0%. 

When Aroon Down hovers near 100% and Aroon Up stays flat, it often reflects a market firmly in the grip of sellers, with little sign of an incoming reversal.

However, the Relative Strength Index reading was at 47, meaning the token was slightly oversold, a potential signal that bearish momentum could be slowing, especially if buying interest continues to build around the recent partnership news.

For AXL to break out of its multi-month downtrend, it would need to reclaim key resistance levels starting at $0.32, where the 50-day moving average currently hovers.

Axelar price could rally once market stabilizes

Technical indicators for AXL may still favor the bears, but sentiment around the Axelar project itself appears to be improving, especially in light of its recent partnership.

On Sep. 22, mXRP, which is being touted as the first fully DeFi-composable XRP yield product, officially launched in collaboration with Axelar, Midas, and asset manager Hyperithm. mXRP will allow XRP holders to deploy mXRP across DeFi protocols to maximize earnings from their XRP holdings.

mXRP was developed using Aexlar as the interoperability protocol, and such a high-profile partnership is expected to boost its revenue generated from transaction fees and also add to the protocol’s credibility.

The buzz around the partnership has also led to a sharp increase in onchain activity on the Axelar network. According to data from Santiment, daily active addresses on the network have jumped over 85% over the past 24 hours.

In the background, whales are taking an interest in the token and have ramped up their holding, most likely to capitalize on the price dip, with AXL dipping over 16% from its 7-day high of $0.3465 the previous day. (See below.)

With the increased community chatter, especially around the mXRP launch and fresh interest from the XRP community, Axelar was also a trending topic on Google, which is often a sign of retail interest as well.

As such, once the broader crypto market stabilizes, AXL price may be able to recover from its recent downturn.