**Axie Infinity (AXS) GameFi Ecosystem Signals Imminent Comeback**
The price of Axie Infinity (AXS) recently hit a two-year low of $4.20 due to declining investor interest in the GameFi sector. However, on-chain indicators now suggest that the AXS GameFi ecosystem is showing signs of a potential comeback.
Gamers on the Axie Infinity platform have seen significant profits as the GameFi sector emerged as one of the unexpected winners during the recent crypto market rally. The question now is whether these gains will continue or if gamers will exit early.
Axie Infinity Has Attracted Active Gamers Since Mid-October
In the past 10 days, the price of Axie Infinity has increased by an impressive 43%, rising from $4.1 to $5.85 between October 19 and October 30. This upward trend cannot be solely attributed to the broader crypto market rally.
Data trends show that the Axie Infinity ecosystem had been attracting active gamers even before last week’s price breakout. The number of daily Active Addresses interacting on the gaming network has been steadily increasing since mid-October.
On October 15, Axie Infinity registered 173 Active Addresses, but this number has consistently risen, reaching a 100-day peak of 484 addresses on October 29. This increase in active users is a bullish signal for the blockchain network.
Axie Infinity Gamer Profits Reach New Highs
Like other GameFi and Play-2-Earn projects, Axie Infinity has a separate token called Smooth Love Potion (SLP) used for trading in-game assets among gamers. The profits earned by SLP token holders have surpassed AXS’ recent price gains significantly.
The Market Value to Realized Value (MVRV-30) ratio shows that unrealized profits for SLP holders have reached 53%, the highest since February 2022. This indicates that current Axie Infinity gamers are choosing to hold onto their assets rather than cashing in on their profits.
This bullish behavior suggests that gamers may be looking to use their tokens for more valuable in-game transactions or positioning themselves for higher profits in the future. This trend is a positive sign for the Axie Infinity price and ecosystem.
Hot Take: Axie Infinity Poised for $10 Price Target
Considering the current network activity of Axie Infinity, the price has the potential to retest the $7 resistance level. The fact that gamers have not sold their SLP profits early positions AXS for further gains.
The Global In/Out of the Money (GIOM) data confirms this outlook, indicating that the $7 area poses the most significant resistance to the ongoing AXS rally. If holders begin to sell as the price approaches $7, there could be an immediate pullback. However, if gamers continue to hold, AXS could reach $10 for the first time since March 2023.
On the downside, if AXS retraces below $4, it could hinder the GameFi comeback. However, there is strong support around $4.65, where many current holders bought their AXS holdings. Failure to hold that support level could push the price toward $4.
In summary, the growth in SLP price and gamers’ profits indicates that the GameFi comeback is driven by organic gaming activity and asset trading profitability rather than speculation on crypto market trends.
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**Hot Take: Axie Infinity Poised for $10 Price Target**
Axie Infinity’s recent growth in active users and profits earned by gamers has positioned it well for a potential price surge. The increasing number of active addresses and rising SLP profits indicate a strong foundation for continued success.
With its underlying network activity and the decision of gamers to hold onto their assets, Axie Infinity has the potential to retest the $7 resistance level. If successful, it could even reach $10 for the first time in years.
However, a retracement below $4 could hinder the GameFi comeback. Strong support exists around $4.65, but failure to hold that level may result in a price retrace toward $4.
Overall, Axie Infinity’s organic growth and profitability make it a promising investment opportunity in the GameFi sector.
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