Axie Infinity’s ($AXS) price slid to a three-year low amid the ongoing legal battle against US SEC. In addition to the price decline, on-chain data shows players are increasingly abandoning the GameFi protocol. Can $AXS recover from the ongoing bearish trend?
Behind TheSanbox (SAND) and Decentraland (MANA), Axie Infinity ($AXS) has now slid to third in the global GameFi rankings by market capitalization. The recent price correction was triggered after the US Securities and Exchange Commission listed $AXS among the cryptocurrencies identified as securities.
What are the chances of an $AXS price recovery amid the overwhelmingly negative sentiment?
Active Gamers are Abandoning Axie Infinity
Axie Infinity native token $AXS derives most of its utility and traction from gamers who use it to pay for in-game assets and exclusive access to critical ecosystem perks and features.
As the SEC-induced market FUD spread across the Axie Infinity ecosystem, active players have also begun to abandon the GameFi protocol.
On June 10, $AXS attracted 2,000 active addresses. However, at the close of June 19, that figure has dwindled by a whopping 89% to 229 active wallet addresses.
The Daily Active Addresses (DAA) metric measures the underlying demand for a blockchain network’s core service by summing up the number of unique wallet addresses interacting daily.
The chart above shows that Axie Infinity is losing network traction faster than $AXS’s price is declining. When this happens, it signals that the underlying token may experience some tough times ahead.
More From BeInCrypto: Crypto signals: What Are They and How to Use Them
Whale Investors Have Lost Confidence in $AXS
Furthermore, large institutional investors appear to have lost confidence in the $AXS price prospects amid the current market sentiment.
IntoTheBlock’s chart below shows that $AXS has recorded only 2 large transactions in the last 6 trading days combined. And, remarkably, zero in the last two trading days.
The Large Transactions metric tracks the number of confirmed transactions that exceed $100,000 in value. The chart above indicates that institutional investors are increasingly avoiding Axie Infinity.
If the whales continue to keep their trading activity at a minimum, $AXS will likely drop below $4 in the coming weeks.
Read More: Top 11 Crypto Communities To Join in 2023
$AXS Price Prediction: Bearish Reversal Toward $4
According to IntoTheBlock’s IOMAP distribution data, UNI price will likely enter a bearish downswing toward $3.75. But currently, the 35 investors that bought 55,000 $AXS tokens at a minimum price of $4.70 are expected to offer considerable support.
Nevertheless, if that support folds, as expected, then the Axie Infinity price will likely decline toward $4.05.
Still, the $AXS bulls can negate this bearish narrative if it rises above $5 against the run of play. But as seen above, the 1,020 addresses holding 2 million $AXS tokens at the maximum price of $5.02 could pose significant resistance.
And if that resistance level caves, the price could finally reclaim the $6 milestone.
coingape.com
cryptonewsz.com
u.today
