The price of Axie Infinity (AXS) rose 20% last week after a rare gaming tournament triggered an unexpected rally. As the championship continues, the data on the series suggests that the climb may not be over. Can the bulls pay AXS price gains for me?
World Cup finals AxieTH World Battle Bangkok 2023 started on June 25th. Within a week, the network activity picked up and pushed AXS price above the $6.50 critical resistance. While the price has fallen slightly in the past few days, the on-chain data indicates that there may be more gains to come.
Axie Infinity network activity has increased significantly
According to data collected by the blockchain forensics platform EmotionThe sharp rise in network activity played a pivotal role in the continued price hike. On June 23, Axie Infinity has only attracted 1,524 active users. With the AXS price rising by 20%, network activity has also been relatively up.
The chart below shows that AXS Daily active headlines It rose 22% to 1,864 by the end of July 3.
Active Addresses (7D) measures changes in user activity by aggregating the daily number of unique wallet addresses executing transactions.
It is a bullish sign when it is rising, which indicates that more users may be in the market for the underlying token in the coming days.
With the ongoing Axieth gaming competition, Axie Infinity is likely to maintain this high level of user activity in the coming days. If that happens, the price of AXS could rise further.
The gaming platform still seems undervalued
After the AXS price rose by 20% over the past two weeks, it still appears to be undervalued. The network value to transaction volume (NVT) ratio has been declining since mid-June. From June 17th to July 4th, AXS saw an 87% decrease in the NVT percentage.
The NVT ratio evaluates the growth in the underlying economic activity on the blockchain network in relation to the price of the token. When it goes down, it indicates that the token is in an overbought state and could make further gains.
If this pattern holds true, AXS may be dominated by bulls again in the coming days.
AXS Price Prediction: Further gains could strengthen it towards $7
Given the above factors, AXS is likely to make more gains and push towards $7 in the coming days. But first, the bulls should measure the resistance at $6.50. Here, 538 investors who bought 1.13M at $6.49 could trigger another pullback.
On the contrary, the bears can negate the bullish position if the AXS Index drops below $6.
However, 520 owners who purchased 260,000 Axie Infinity Tokens at an average price of $5.91 can support.
But if this support line fails to hold, AXS could drop further towards $5.
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 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.