Is the sport over for Axie Infinity (AXS/USD)? Nicely, that might be the case going by the technical outlook of the native token AXS. The cryptocurrency has misplaced greater than 94% since its $171 excessive in November 2021. AXS now trades at $8.6. Technical indicators present the token might halve to under $4. What’s taking place?
Gaming tokens rose to the limelight final 12 months on the top of the crypto growth. Nevertheless, they’re the toughest hit within the bear market this 12 months as expectations of financial tightening mount. Axie Infinity has been in the identical boat as participant counts on the platform go south. Accordingly, the participant rely on the favored play-to-earn platform has fallen by 74% since January. Arguably, buyers are discovering much less enjoyable in video games in an exceedingly bear market.
One other elephant within the room is brewing for AXS. On October 11, the builders introduced the unlocking of extra Axie Infinity Shards. The transfer kicks off on October 24 and is predicted to extend AXS token provide by about $185 million. AXS COO Leonard Larsen defended the transfer saying that the unlocked tokens are dissimilar to these in circulation. He described it as “enterprise as common” in response to group dissatisfaction.
Nevertheless, the market has reacted adversely. For the previous one week, AXS has plunged by 22%, with extra downsides seemingly. Right here is the technical outlook:
AXS eyes $4 backside as value maintains a free fall
Supply – TradingView
Technically, momentum is weak for AXS after the weekly decline. A bearish MACD crossover units the tone for the AXS value motion within the subsequent few days. The following assist lies round $4, the extent it was earlier than the bullish surge final 12 months. That means a possible 50% decline for AXS if bulls don’t arrest additional decline at $8.
Sentiment and technical indicators reinforce a bearish marketplace for AXS. On the present buying and selling, AXS is exchanging palms on the lowest stage this 12 months. The cryptocurrency might proceed to slip and discover assist on the $4 backside amid a bear momentum. Buyers ought to wait and buy on the potential backside.
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