Languishing below $5, Axie Infinity (AXS) price is now down 97% from its $166 peak achieved during the 2021 Metaverse rally.
Axie Infinity (AXS), the top-ranked Metaverse project, has experienced a significant decline in its market capitalization. During the 2021 Metaverse rally, the project’s market cap reached $9.6 billion, but as of September 8, 2023, it has fallen by over 93% to $630 million.
An on-chain analysis is being conducted to assess the potential for a recovery in AXS price. Despite the dip below $4.95 in August, on-chain data indicates a positive reaction within the Axie Infinity network. AXS Daily Active Addresses have been steadily increasing since August 21.
Prior to August 20, only 176 wallet addresses interacted on the AXS network. However, since then, network activity has gradually risen, with over 200 addresses engaging in transactions on most trading days since August 31.
This rise in Active Addresses suggests that retail investors have entered the market to prevent further losses. The increased network activity has also helped AXS defend the $4.50 support level, preventing a panic sell-off at the end of August.
Bullish Traders Have Not Given Up on Recovery Hopes
Strategic traders have placed significant sell walls to protect against Axie Infinity’s potential collapse. Active orders to purchase 1.25 million AXS tokens have been placed, while bearish traders have only listed 1.14 million AXS for sale.
Despite the bearish sentiment surrounding the metaverse, 283 addresses have purchased 343,580 AXS at the minimum price of $4.37. If these holders choose to HODL (hold on for dear life), Axie Infinity’s price could potentially rebound. However, if the support level is breached, AXS price may continue to decrease towards zero.
Hot Take:
Although Axie Infinity’s price has experienced a significant decline, there are positive indicators within the network that suggest a potential recovery. The increase in Active Addresses and the presence of bullish traders placing buy orders demonstrate some optimism for the project’s future. However, the risk of further decline remains if the support level is broken. As the metaverse market continues to evolve, it will be interesting to see how Axie Infinity responds and whether it can regain its previous market position.
By
By
By
By
By
By