Analytics
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In February, Axie Infinity (AXS) lost 5% of its price. The continued decline in large holder trades and price volatility suggest that the bears will remain firmly in control in the coming weeks.
Axie Infinity whales show no signs of activity
Axie Infinity is one of the ten most popular GameFi projects worldwide. However, it is now going through hard times: over the past 30 days, the activity of large AXS holders has significantly decreased, which indicates a further fall in the asset price.
According to on-chain platform Santiment, the number of whale transactions registered on the Axie Infinity network has fallen by almost 80% since the beginning of February. Previous drawdowns in the AXS price have often been accompanied by a similar decline in the volume of large trades.
Source: Santiment
On Jan. 31, Santiment registered 66 AXS trades worth over $100,000. By March 14, the number of trades dropped to 14.
AXS price fluctuations have also become less intense. The volatility coefficient, measured at intervals of four weeks, reached a 3-month low at the end of February. As of March 14, it is at around 0.12.
Source: Santiment
Price stagnation can provoke short-term holders to sell tokens, as they usually prefer highly volatile assets.
AXS price could drop below $6
To predict the possible price action of AXS in the coming weeks, we turned to the market depth chart. It is a collection of limit orders placed by token holders on leading exchanges and displays key support and resistance points relative to current prices.
The current decline is likely to stop at $6.5 where there is a wall of 500,000 buy orders for 137,000 AXS. If this level does not suit, the prospect of a further fall to $5 will loom on the horizon.
Source: IntoTheBlock
In the event of a trend reversal to an upward, the key resistance point will be the level of $9.72. It hosts over 90,000 sell orders for nearly 1.5 million tokens. Well, if AXS manages to overcome it, the next target will be $12 – holders have already placed 1.3 million tokens for sale at this price.
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