Axie Infinity (AXS) closed April in a negative 5% position after the recent token opening event triggered bearish price movement. On-chain data shows that Axie Infinity GameFi Network may struggle to break out of the downtrend.
Axie Infinity is one of the biggest names in the GameFi industry. AXS price has been fluctuating recently as investors react to Unlock Code April 23rd, which saw nearly 19 million tokens with a value of more than $144 million in circulation. With traders increasingly concerned about selling opportunities, here’s a data-driven outlook to forecast AXS prices in the coming weeks.
Axie Infinity dealers are looking for selling opportunities
Axie Infinity traders have been piling sell orders across several cryptocurrency exchanges after the recent token opening. The depth of the exchange market provides an aggregate of all limit orders placed on recognized exchanges by holders of a particular token.
At the moment the owners have put 527,000 AXS up for sale. However, referring to the bearish outlook, buyers ordered less than 475,000 AXS tokens.
With the market oversupplied at 52,000 AXS, prices are likely to drop as sellers compete to fill orders. Unless the Axie Infinity Network can attract new demand in the coming days, the price of AXS is likely to drop.
The struggle to attract new demand continues
According to data provided by Santiment, AXS has struggled to attract new order over the past month. The graph below shows how the growth of the Axie Infinity network has fallen continuously since the beginning of April.
Specifically, between April 7th and May 3rd, the network’s growth dwindled from 113 to 55, which is a 51% decrease.
Network growth measures the number of new wallet addresses generated per day on the blockchain. It roughly estimates the rate at which the ecosystem is attracting new participants.
When it starts to drop sharply, as noted above, it indicates a dearth of new potential investors.
In conclusion, the downtrend in Network Growth means that increased selling pressure from Axie Infinity traders will likely lead to further declines in AXS prices.
AXS Price Prediction: The $7.21 support level is crucial
IntoTheBlock’s global In/Out of the Money (GIOM) price data indicates that AXS will drop towards $6.50. But first, the bears need to fight the initial support line around $7.21.
Around this critical price level, 1,160 investors who bought 123 million tokens at an average price of $7.21 will try to support the price.
If the market remains bearish as expected, AXS price could drop to a 4-month low of $6.50. At this level, 786 investors who paid an average of $6.50 for 202,000 tokens could end the recession.
However, the bulls can negate the bearish narrative if Axie Infinity price can break above $7.70. But fierce resistance from 290 wallet addresses containing 386,000 tokens could pose a challenge.
If the bulls can extend the selling range at $7.70, AXS holders can be optimistic about an early recovery towards the $8.63 region.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.