The price of Axie Infinity’s native token AXS is down 97% from its 2021 peak of $166.
The once popular Play-2-Earn project Axie Infinity fell out of the top 50 most capitalized cryptocurrencies. At the peak of the 2021 bull market, AXS’s market capitalization was $9.6 billion, but as of September 8, it has fallen to a modest $630 million.
Let’s figure out whether Axie has a chance of recovery using on-chain analysis.
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The number of active Axie Infinity addresses is growing again
On August 20, the price of AXS dropped below $4.95. However, despite the fall in token prices, the number of active addresses began to grow steadily: according to the analytical platform Saintlysince August 31 it has exceeded 200 almost every day.
Source: Saintly
Metrics Active Addresses tracks the level of activity on the network by summing the number of unique addresses making transactions. Its growth, as a rule, means a surge of interest in the underlying asset. If the trend continues, Axie Infinity holders will be able to defend the $4.50 level and prevent a wave of sell-offs.
Bulls remain hopeful for AXS recovery
According to the analytical platform IntoTheBlocktraders placed orders to buy 1.25 million and sell 1.14 million AXS on centralized exchanges.
Source: IntoTheBlock
Thus, the current market demand for AXS still exceeds supply by 110,00 tokens – even despite the prevailing bearish sentiment. This suggests that market participants are willing to withstand the looming selling pressure and prevent Axie Infinity’s price from falling to zero.
Axie Infinity price forecast: consolidation around $5
Although bulls continue to make aggressive efforts to restore the price, AXS is likely to face significant challenges as it approaches $5. This is clearly demonstrated by the data In/Out of Money Around Price (IOMAP)reflecting the distribution of purchase prices among current token holders.
The graph below shows that 279 addresses purchased 1.05 million coins at a maximum price of $4.70. Without a significant change in market sentiment, they may exit positions ahead of time and trigger another fall. However, if the bulls manage to resist the selling pressure, Axie Infinity will avoid a collapse and consolidate around $5.
A decrease in interest in the project and an increase in negative news on the market, meanwhile, can turn the situation in the direction of the bears. 283 wallets buying 343,580 AXS at a minimum price of $4.37 will provide some support to the asset. But if this level is not satisfactory, the native Axie Infinity token will face a prolonged fall to new lows without any special obstacles.
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2023-09-09 10:55:51
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