Axie Infinity’s Price Gains Spark Hope for the Metaverse Sector
Axie Infinity (AXS) has experienced a 21% increase in price recently, leading to optimism that investor interest could return to the metaverse sector. One key factor impacting AXS price action is increased user activity, which has helped defend the $4 support level. On-chain data shows a significant rise in user activity as AXS price dropped towards $4 on October 19. This surge in activity indicates more users are interacting with services built on the Axie Infinity network.
Mounting Exchange Reserves Raise Concerns of Early Exits
While AXS has seen impressive gains compared to other top coins, recent on-chain movements suggest that holders may not stick around for long. The increase in AXS Exchange Reserves indicates a lack of confidence in the long-term recovery of the metaverse sector. Investors have deposited 354,000 AXS tokens into exchange wallets between October 19 and October 26, potentially signaling a desire for short-term exit opportunities.
AXS Price Prediction: The $7 Resistance is Critical
Achieving further price recovery for Axie Infinity could face resistance if holders decide to book profits early. The Global In/Out of the Money data reveals that the $7 territory presents a significant obstacle to ongoing price recovery. However, if user activity continues to rise, there is potential for the price rebound to reach the $10 range. On the downside, slipping below the $4 mark could result in bearish control, but strong support is expected around $4.40.
Hot Take: Investor Confidence and User Activity Will Determine Axie Infinity’s Future
The recent increase in user activity and investor interest have provided hope for Axie Infinity’s price recovery. However, the metaverse sector still faces challenges, and it remains to be seen if investors will hold out for long-term recovery or exit at favorable prices. The key factors to watch are user activity levels and exchange reserves, as they can significantly impact the price of AXS. Ultimately, the future of Axie Infinity depends on investor confidence and continued growth in user engagement.
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