- Axie Infinity price is close to hitting the December 2022 lows of $5.85.
- AXS holders have been actively selling following the 13% crash in the last three days.
- Investor participation also jumped significantly as bearish concerns rose in the crypto market.
Axie Infinity price, following the broader market cues, is trending downwards for the moment as the bearishness in the market has grown considerably. Incited with the regulatory crackdown by the Securities and Exchange Commission (SEC), the investors have resorted to offloading their holdings for now.
Axie Infinity price nears key support level
Axie Inifity price trading at $6.25 is nearing December 2022 lows of $5.85, a level that has been tested only once in the last six months. The relentless crashes of this year have contributed considerably to the price fall, including the 13% crash in the past three days.
AXS/USD 1-day chart
This has led to the investors now setting a selling mindset which is visible in the on-chain performance of the cryptocurrency. Between May 18 and at the time of writing, more than $7.5 million worth of AXS has been sold back to exchanges since recovery, or the chances of one have not been observed yet.
Axie Infinity supply on exchanges
This selling is also backed by the fact that investors’ deposits spiked to a five-month high. Historically, spikes on this metric have only been observed at peak prices thatmark the market top. Usually, this is proceeded by selling and correction. But this time around, the spike is not the result of a market top but just selling since the price is at a six-month low right now.
Axie Infinity active deposits
Therefore, this is an indication of the excessive bearishness, pessimism and fear of losses in the investors, which is also noted by the sudden jump in their participation. Active investors akin to active deposits observed a spike over the last week, wherein their numbers grew from 199 to 419, marking a 110% increase.
Axie Infinity active addresses
Thus if AXS holders can bear such an impact on the Axie Ininifty price, it is bound to potentially decline and fall through the support level of December 2022 lows at $5.85. However, if the same investors stop selling, they could potentially pull the price back up toward the barrier at $7.25, which also coincides with the 50-day Exponential Moving Average (EMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.