The cryptocurrency market has experienced corrective price movements recently, significantly impacting the popular metaverse coin project Axie Infinity (AXS).
As a result, AXS has retreated from its all-time high (ATH) level by 60%, with ongoing selling pressure as trading volume weakens.
According to experienced analyst Jonathan Morgan, if AXS continues to show notable gaps between the bodies of its candlesticks and the Tenkan-Sen line, a price jump could be anticipated.
At present, AXS has found temporary support at the $70 mark. Analysis shared by Metaverseplanet.net, originally by Jonathan Morgan, suggests that AXS might undergo a period of consolidation before determining its price trend direction.
The second largest high volume node at $70 on the Volume Profile has created a support zone for AXS. However, it remains uncertain if this will be sufficient to counteract further selling pressure.
The gaps between the bodies of daily candlesticks and the Tenkan-Sen line might temporarily restrain how low the Axie Infinity price can go, but this could also potentially be a brief pause before another potential price drop.
The Volume Profile for Axie Infinity (AXS) shows a significant thinning between $65 and $50, indicating that this range is where the next primary support zone is likely to be established. The $50 mark is crucial for several reasons.
Firstly, it represents a significant psychological threshold for investors. Secondly, there is a high-volume node in the $45-$50 value area, adding to its importance as a support level. Thirdly, the closest Fibonacci retracement level (38.2%) is situated at $46, reinforcing the significance of this area.
Should the Axie Infinity price fall below $65, the $50 value area is expected to act as a barrier against further bearish momentum.
For a shift in the current bearish trend, bulls would need to drive the price of Axie Infinity above the daily Kijun-Sen and achieve a close above $95. This movement would be necessary to negate the prevailing downward trend and potentially signal a turnaround in the coin’s market performance.
What is AXS (Axie Infinity)
Axie Infinity is a blockchain-based “play-to-earn” (P2E) video game inspired by Pokémon. In the game, players collect, breed, raise, battle, and trade digital creatures called “Axies,” which are unique NFTs (Non-Fungible Tokens).
AXS (Axie Infinity Shards) is the primary token of the Axie Infinity ecosystem. It serves two main purposes:
- Governance: AXS holders can stake their tokens to participate in governance votes, helping to make decisions about the future development of the game and the management of its Community Treasury.
- Staking: Holders can “stake” (lock up) their AXS tokens to earn weekly rewards.
In simple terms: Axie Infinity is the game, Axies are the NFT creatures you play with, and AXS is the token that gives you a voice in the game’s future and allows you to earn rewards for participating in the ecosystem.
(The game also uses a second token, SLP (Smooth Love Potion), which is the main token earned by players for winning battles and is used to pay for breeding new Axies.)
You may also like this content
