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Axie Infinity (AXS) Slides 16% in March, Is It Game Over for the Bulls?

Press Releases Crypto News BeInCrypto Axie Infinity (AXS) Slides 16% in March, Is It Game Over for the Bulls?

Axie Infinity’s month-on-month growth has trended negative since the close of January 2023. Another 16% decline in March has raised bearish concerns among crypto investors. Where will AXS find support?

On March 10, Axie Infinity (AXS) reached a local low of $7. It briefly rebounded toward $9.7 on March 19 but has been met by fierce resistance from the bears. Among other underlying on-chain metrics, the decline in whale activity and failure to attract new demand suggests that AXS could soon retest $7.

AXS Whales Go Missing In Action

Axie Infinity currently ranks third among the largest GameFi projects based on market capitalization. However, the price has steadily declined since reaching its year-to-date high of $13.42 on Jan. 23. Notably, the AXS price drop has coincided with a comparable decrease in the volume of whale activity across the popular network.

According to the data compiled by Santiment, since the recent local high on March 19, AXS transactions exceeding $100,000 dwindled from 52 transactions to just 4 transactions recorded on April 5. The chart below shows that a 7.5% price downswing has closely followed the dearth of whale activity within the same period.

Axie Infinity (AXS) Whale Transaction Count, April 2023. Source: Santiment

Evidently, there has been a close correlation between price action and the activity of AXS whales in the past 3 months. If the dwindling trend does not reverse, AXS holders can expect more downside in the coming weeks.

Likewise, the slowdown in new user acquisition further validates the bearish outlook for AXS. Anothe

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Author: Ibrahim Ajibade

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