This week, the price of Axie Infinity (AXS) dropped below the critical support level at $7. While current demand is weak, on-chain data is showing multiple green signals indicating an imminent recovery. Can AXS get my $7 back in the coming days?
After the price hike triggered by the Apple AppStore listing on May 17, it now appears that bears Axie Infinity (AXS) have seized control of the market. AXS price is down 18% from its recent high of $7.7 set on May 17.
Despite the price drop, new users continued to join the Axie Infinity GameFi ecosystem. With losses now approaching alarming levels, will AXS holders trigger a price rebound if they stop selling?
Axie Infinity continues to attract new users
According to core chain data, the recent price decline has not caused a significant deterioration in Axie Infinity’s network activity.
the active addresses (7d) The chart below shows that AXS continued to attract new users this week. Between May 16th and May 23rd, it increased by 73% from 823 to 1,425 active addresses.
As we saw above, the number of active users of AXS has been on the rise since May 17, when Apple announced the inclusion of the strategy game “Axie Infinity: Origins” in its native App Store.
Obviously, new users continued to enter the Axie Infinity metaverse as they can now download the AXS game on their iPhones and other 1.5 billion active Apple devices worldwide.
If this trend continues, it is only a matter of time before AXS makes an upward bounce in the price.
Investors can stop selling soon
the Market value to realized value (MVRV) The data shows that most Cardano investors are now suffering large unrealized losses. The MVRV ratio evaluates the net financial position of investors by comparing their purchase price to the current market value of the asset.
the Emotion The graph below shows that, with prices at $6.53, investors who bought AXS in the last 30 days have nearly 9% unrealized losses.
With a net loss position of 9%, most existing Axie Infinity investors may be unwilling to sell at current prices.
If they actually stop selling because they are desperate to keep their losses below 10%, they may inadvertently cause another AXS price hike.
AXS Price Prediction: $7 still on hand
If Axie Infinity gains enough bullish momentum as expected, it will face a lower resistance until it reaches $7.10.
However, to be confident in the bullish Axie Infinity price prediction, it must first break above the $6.90 area. In that area, selling pressure from 2,130 investors who bought 1.77 million AXS at an average price of $6.91 could pull back.
If AXS can break this resistance, it could rise to $7.31.
Conversely, the bears can invalidate the bullish AXS price prediction if its current downtrend reaches $6. But a potential buy wall by 347 investors indicating 19,700 AXS aircraft at an average price of $6.07 could prevent a decline.
Axie Infinity could slide towards $5.51 if this support level does not hold as these areas have smaller pockets of buyers.
Axie Infinity (AXS) Price Drops Below $7: Can iPhone Gamers Save the Day? First appeared on BeInCrypto.