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Axie Infinity (AXS) Price Prediction: When Will the Bearish Tide Subside?

2 mins
Updated by Ryan Boltman
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In Brief

  • Axie Infinity (AXS) bearish trend could persist after holders took a 5% haircut in February.
  • Whale transactions on the network have declined for two consecutive months.
  • AXS will likely slide toward $6.
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Axie Infinity (AXS) entered a bearish trend after a 5% negative performance in February.

The steady decline in whale transactions and price volatility suggests that the bears may remain in firm control in the coming weeks.

AXS Whales Are Missing in Action  

Axie Infinity is one of the top 10 ranking GameFi projects globally. In February, its native AXS token delivered an unimpressive 5% price decline. And tellingly, the activity of large investors has diminished significantly on the blockchain gaming network over the past 30 days, signaling an extended price slump. 

According to the renowned on-chain market intelligence platform, Santiment, the number of whale transactions recorded on the Axie Infinity network has dropped by nearly 80% since the start of February. 

Previous AXS price slumps have frequently been accompanied by a comparable fall in the volume of large transactions. 

AXS Whale Transaction Count March 2023
AXS Whales Transaction Count, March 2023. Source: Santiment. 

Santiment recorded 66 AXS transactions worth over $100,000 at the close of Jan. 31, and by the recent count on March 14, the figure has dropped to 14. 

Also, a closer look at the on-chain data trail of the Axie Infinity network shows that price volatility has become less intense. 

AXS price volatility ratio, measured at four-week intervals, reached a 3-month low as trading drew to a close in February. 

AXS Price Volatility March 2023
AXS Price Volatility, March 2023. Source: Santiment

From 0.20 recorded on Feb 1, AXS price volatility ratio hovered around 0.12 as of March 14. In the past, when volatility diminished, it often coincided with price slumps on the GameFi network. 

Furthermore, crypto investors often seek high-volatility assets because they move more quickly and have larger price changes. Hence, the declining volatility on the AXS network may likely trigger short-term traders to sell off their tokens as they seek to avoid a stagnant price action in the coming weeks. 

Axie Infinity Price Prediction: Drop Below $6?

IntoTheBlock’s Exchange Market Depth chart provides a data-driven estimate of potential AXS price movement in the coming weeks. 

Market Depth or Bid-Ask spread is a partitioned aggregate of the limit orders placed by AXS holders on top exchanges. It depicts key support and resistance points with respect to current prices. 

The current bearish trend will likely halt at $6.5, where a buy wall of the 500,000 orders totaling 137,000 AXS is set to offer strong support. If this does not hold, a further decline toward $5 could be on the horizon. 

Axie Infinity (AXS) Exchange Market Depth
Axie Infinity (AXS) Exchange Market Depth, March 2023. Source: IntoTheBlock

In contrast, if the trend turns bullish, $9.72 is a key resistance point, as the aggregate order books of exchanges currently show 91,000 sell orders of nearly 1.5 million AXS tokens.  

But, if Axie Infinity scales this resistance point, the 113,000 sell orders of 1.3 million AXS tokens at $12 will be the next cluster to beat.  

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Disclaimer

In line with the 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, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Ibrahim Ajibade
Ibrahim Ajibade Ademolawa is an experienced On-chain research analyst who began his career in Commercial Banking. He has worked with several Web3 startups and financial institutions —analyzing technical concepts and spectacular events that link the DeFi and TradFi worlds. He holds a Bachelors’ Degree in Economics and is currently pursuing an MSc. in Blockchain & Distributed Ledger Technologies.
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