Axie Infinity Whales Sell Their Holdings
Despite a 12% price rebound, on-chain analysis shows that Axie Infinity (AXS) whales have taken advantage of the recent rally to sell their holdings. Data compiled by Santiment reveals that these crypto whales, holding between 100,000 and 10 million AXS tokens, had a cumulative balance of 83.28 million when the price hit a bottom of $4.08 on September 11. As the price increased, they sold 760,000 AXS tokens, reducing their balance to 82.52 million as of September 20. This suggests that institutional investors on the Axie Infinity network are skeptical about the token’s recovery prospects.
Bearish Traders Pose a Threat
Exchange order books indicate that bearish traders have regained control of the market for AXS. The sell-wall formed by strategic traders is considerably higher than the purchased orders from buyers. Active orders to sell 1.9 million AXS tokens have been placed, while purchased orders only amount to 1.8 million AXS tokens. The Exchange On-chain Market Depth chart also shows that current market supply exceeds demand by 100,000 tokens, signaling potential downward pressure on the price.
Predicted Downswing Towards $3
On-chain indicators suggest another bearish reversal for AXS, with a potential downswing towards $3 in the near future. The In/Out of Money Around Price data reveals that if the support level at $4 holds, there is a chance for a mild price recovery. However, if whale investors maintain their bearish stance, the price could move closer to $3 as predicted. There are also addresses that bought AXS at the minimum price of $4.70; if they choose to close their positions, the price may retrace. However, if resistance at $5 is broken, a recovery towards $7 is possible.
Hot Take: Uncertain Future for Axie Infinity (AXS)
Axie Infinity (AXS) has experienced a recent price rebound, but on-chain analysis and market indicators suggest that its path to recovery may face significant challenges. Whale investors have been selling their holdings, signaling a lack of confidence in AXS’ prospects. Additionally, bearish traders have regained control of the market, posing a threat to the price. The imbalance between supply and demand further indicates potential downward pressure. While there is a possibility of a mild price recovery if certain support levels hold, the overall sentiment remains uncertain. The future of AXS hangs in the balance as it navigates through these challenges.
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