Are Bears Still in Control?

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Axie Infin­i­ty (AXS) entered a bear­ish trend after a 5% neg­a­tive per­for­mance in February. 

The steady decline in whale trans­ac­tions and price volatil­i­ty sug­gests that the bears may remain in firm con­trol in the com­ing weeks.

AXS Whales Are Missing in Action 

Axie Infin­i­ty is one of the top 10 rank­ing Game­Fi projects glob­al­ly. In Feb­ru­ary, its native AXS token deliv­ered an unim­pres­sive 5% price decline. And telling­ly, the activ­i­ty of large investors has dimin­ished sig­nif­i­cant­ly on the blockchain gam­ing net­work over the past 30 days, sig­nal­ing an extend­ed price slump. 

Accord­ing to the renowned on-chain mar­ket intel­li­gence plat­form, San­ti­ment, the num­ber of whale trans­ac­tions record­ed on the Axie Infin­i­ty net­work has dropped by near­ly 80% since the start of February. 

Pre­vi­ous AXS price slumps have fre­quent­ly been accom­pa­nied by a com­pa­ra­ble fall in the vol­ume of large transactions. 

AXS Whale Transaction Count March 2023
AXS Whales Trans­ac­tion Count, March 2023. Source: San­ti­ment. 

San­ti­ment record­ed 66 AXS trans­ac­tions worth over $100,000 at the close of Jan. 31, and by the recent count on March 14, the fig­ure has dropped to 14. 

Also, a clos­er look at the on-chain data trail of the Axie Infin­i­ty net­work shows that price volatil­i­ty has become less intense. 

AXS price volatil­i­ty ratio, mea­sured at four-week inter­vals, reached a 3‑month low as trad­ing drew to a close in February. 

AXS Price Volatility March 2023
AXS Price Volatil­i­ty, March 2023. Source: San­ti­ment

From 0.20 record­ed on Feb 1, AXS price volatil­i­ty ratio hov­ered around 0.12 as of March 14. In the past, when volatil­i­ty dimin­ished, it often coin­cid­ed with price slumps on the Game­Fi network. 

Fur­ther­more, cryp­to investors often seek high-volatil­i­ty assets because they move more quick­ly and have larg­er price changes. Hence, the declin­ing volatil­i­ty on the AXS net­work may like­ly trig­ger short-term traders to sell off their tokens as they seek to avoid a stag­nant price action in the com­ing weeks. 

Axie Infinity Price Prediction: Drop Below $6?

IntoTheBlock’s Exchange Mar­ket Depth chart pro­vides a data-dri­ven esti­mate of poten­tial AXS price move­ment in the com­ing weeks. 

Mar­ket Depth or Bid-Ask spread is a par­ti­tioned aggre­gate of the lim­it orders placed by AXS hold­ers on top exchanges. It depicts key sup­port and resis­tance points with respect to cur­rent prices. 

The cur­rent bear­ish trend will like­ly halt at $6.5, where a buy wall of the 500,000 orders total­ing 137,000 AXS is set to offer strong sup­port. If this does not hold, a fur­ther decline toward $5 could be on the horizon. 

Axie Infinity (AXS) Exchange Market Depth
Axie Infin­i­ty (AXS) Exchange Mar­ket Depth, March 2023. Source: IntoThe­Block

In con­trast, if the trend turns bull­ish, $9.72 is a key resis­tance point, as the aggre­gate order books of exchanges cur­rent­ly show 91,000 sell orders of near­ly 1.5 mil­lion AXS tokens. 

But, if Axie Infin­i­ty scales this resis­tance point, the 113,000 sell orders of 1.3 mil­lion AXS tokens at $12 will be the next clus­ter to beat. 

Disclaimer

BeIn­Cryp­to strives to pro­vide accu­rate and up-to-date infor­ma­tion, but it will not be respon­si­ble for any miss­ing facts or inac­cu­rate infor­ma­tion. You com­ply and under­stand that you should use any of this infor­ma­tion at your own risk. Cryp­tocur­ren­cies are high­ly volatile finan­cial assets, so research and make your own finan­cial decisions.

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