Languishing below $5, Axie Infinity (AXS) price is now down 97% from its $166 peak achieved during the 2021 Metaverseย network rally.
Axie Infinity (AXS), the top-ranked Metaverseย network project, has experienced a wholeย lotย of decline in its market capitalization. During the 2021 Metaverseย network rally, the projectโs market cap reached $9.6 billion, but as of September 8, 2023, it hasย dropped by over 93% to $630 million.
An on-chain analysis is being conducted to assess theย capacity for a recovery in AXS price. Regardlessย of 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. Nonetheless, everย since, network activity has gradually risen, with over 200 addresses engaging in transactions on most trading days since August 31.
This rise in Active Addresses impliesย that retail investors have entered the market to prevent further losses. The increased network activity has likewise helped AXS defend the $4.50 levelย ofย support, preventing a panic sell-off at the end of August.
Bullish Traders Have Not Given Up on Recovery Hopes
Strategic traders have placed wholeย lotย of sell walls to protect against Axie Infinityโs probable 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.
Regardlessย of the bearish sentiment surrounding the metaverseย network, 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 Infinityโs price could potentially rebound. Nonetheless, if the levelย ofย support is breached, AXS price may continue to decrease towards zero.
Hot Take:
Despiteย theย factย that Axie Infinityโs price has experienced a wholeย lotย of decline, there are positive indicators within the network that suggest a probable recovery. The increase in Active Addresses and the presence of positiveย trend traders placing buy orders demonstrate some optimism for the projectโs future. Nonetheless, the risk of further decline remains if the levelย ofย support is broken. As the metaverseย network market continuesย to evolve, it will be interesting to see how Axie Infinity responds and whether it can regain its previous market position.
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