In the unpredictable realm of cryptocurrencies, Axie Infinity’s token, AXS, has recently bucked the trend, recording an impressive 9% ascent in value over the past week. This increase comes amidst a broader atmosphere of apprehension, as a significant number of investors have chosen to pull their funds, casting doubts over the future stability of the token’s price.
This exodus of investors from AXS has triggered questions about the coin’s future trajectory. Close to 99% of AXS holders were “Out of the Money,” making the altcoin a potential candidate for a sharp upward movement. The market observed a significant level of disbelief among investors, which could be attributed to the recent shifts in AXS’ performance.
This skepticism was further echoed by data from Santiment, highlighting a decline in Axie Infinity’s social volume despite its recent price surge. The platform also noted a pronounced negative sentiment around the coin as the Weighted Sentiment dropped.
Yet, amid these bearish indicators, AXS exhibited resilience, continuing its upward climb. A notable trend was the reduction in AXS’ supply on exchange platforms, suggesting that the number of tokens held off-exchange surpassed those on exchanges. This shift indicates a predominant buying sentiment among investors. Another promising metric was the Market Value to Realized Value (MVRV) ratio, which experienced an uptick over the past week, indicating a potential further increase in AXS’s value.
To make sense of this dichotomy, one needs to understand the multifaceted nature of the cryptocurrency market. While the immediate metrics paint a bearish picture for AXS, the underlying indicators suggest otherwise. The established support floor at $4 might be crucial in cushioning any potential downward movement.
Bullish momentum has been building around the AXS market, with buyers stepping in to support the coin’s price despite some bearish signals. In the past 24 hours, AXS saw a minimal decrease in price, however, the market is promising a quick rebound. Currently, AXS is at $4.60, with a decrease of 1.16% in the past few hours. This could be a potential buying opportunity for investors looking to enter the market.
The daily technical indicators are in neutral territory, suggesting a balanced market sentiment. However, with the recent price surge, AXS is trading above its 50-day Smooth moving average, indicating a potential bullish momentum in the short term. The relative strength index (RSI) also shows a neutral trend, hovering just around the 50 level. The average directional index (ADX) also shows a neutral trend, further supporting the idea of a balanced market.
