AXS price hits a record high after increasing 100% qoq. Is the situation getting too hot?
AXS, the native token of Axie Infinity, a play-to-earn NFT game powered by the Ethereum blockchain, is up more than 100% on a quarterly basis (QTD), breaking a new record of $ 155.
AXS 4-Hour Price Chart | Source: Tradingview
However, there is a risk of the price falling back as the key technical indicator RSI shows overbought conditions. Accordingly, it could drop below $ 90 – almost 40% lower.
The bearish prediction is based on the relationship between the AXS price and the RSI indicators. In particular, when the RSI rises above 70, this mainly drives the AXS to consolidate sideways or to decline thereafter.
In both cases, however, the token tested the 20-day exponential moving average (20-day EMA, green wave in the graph below) as temporary support.
Daily AXS Price Chart and Times the RSI Is Above 70 | Source: TradingView
Looking at the chart, the RSI has closed above 70 three times since July 1, 2021, each time causing the price to hit the 20-day EMA within 7-30 days. Therefore, when the RSI is overbought, buying AXS is risky for traders and increases the likelihood of short-term losses.
Therefore, AXS could decline similarly in the coming days / weeks, with the next downside target being around $ 87. However, if price continues to move forward, as it did after the overbought signal from July, the downside target could be $ 90 or higher.
Hodl is a better strategy?
The 20-day EMA serves as a buy indicator for traders after RSI-led corrections. Specifically, the trader decided to buy the dip pending re-testing and closing the price above the previous high.
The result shows that traders who did not sell AXS during the correction to the 20-day EMA are making a pretty good profit on paper – the price has risen more than 2,500% since July 1st.
The growing utility of AXS in the virtual world of Axie Infinity (Lunacia) is one of the main catalysts for demand from gamers and traders. In particular, players manipulate the colorful creature Axies to obtain two types of tokens.
The first is the Small Love Potions (SLP) given to the winner of the match, which can be exchanged for cash or reused to breed new Axies. Meanwhile, the second token is AXS, which can be earned by winning seasonal tournaments or selling Axies on Axie Infinity’s dedicated internal market.
On Monday, Axie Infinity’s active users grew to 1.85 million, 4500% more than April, with total cumulative revenue reaching $ 815 million over the same period, according to a report. Token terminal. That’s what made Sky Marvis, the company behind Axie Infinity, the world’s fifth most valuable video game company by market capitalization.
Top game company in the world | Source: Messari
These strong fundamentals added traders’ confidence in AXS. This explains the possibility of recovery after a sharp correction in the 20-day EMA.
AXS Staking Service, start of DEX
The latest buying trend in the Axie Infinity market is due in part to a new feature that enables AXS holders to make profitable use of their tokens. Since its launch on Thursday, the staking feature has attracted more than 12.44 million AXS tokens (~ $ 1.88 billion at current rates).
dashboard Mark out AXES | Source: Axie Infinity
Staking effectively pulls the active supply of tokens out of circulation, combined with growing demand that drives up the price.
In the meantime, Sky Mavis has announced that it will launch a decentralized exchange on the Ronin sidechain, which is connected to Ethereum. The company’s goal is to provide players with faster AXS and SLP liquidity during the game without relying on cross-bridges to buy or exchange tokens.
Axie Infinity will raise $ 150 million at a valuation of $ 3 billion
According to CoinDesk, this Series B funding round is being led by the A16z mutual fund led by Andreessen Horowitz.
Axie Infinity’s final round of fundraising was a $ 7.5 million Seris A that was announced on May 11, 2021. Led by Libertus Capital, with participation by Alexis Ohanian, Mark Cuban, Collaborative Fund and 500 startups Synthetic Team.
Previously, Axie Infinity raised a $ 1.5 million seed round led by mobile game publisher Animoca Brands, which was announced on November 7, 2019.
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AXS price hits a record high after increasing 100% qoq. Is the situation getting too hot?
AXS, the native token of Axie Infinity, a play-to-earn NFT game powered by the Ethereum blockchain, is up more than 100% on a quarterly basis (QTD), breaking a new record of $ 155.
AXS 4-Hour Price Chart | Source: Tradingview
However, there is a risk of the price falling back as the key technical indicator RSI shows overbought conditions. Accordingly, it could drop below $ 90 – almost 40% lower.
The bearish prediction is based on the relationship between the AXS price and the RSI indicators. In particular, when the RSI rises above 70, this mainly drives the AXS to consolidate sideways or to decline thereafter.
In both cases, however, the token tested the 20-day exponential moving average (20-day EMA, green wave in the graph below) as temporary support.
Daily AXS Price Chart and Times the RSI Is Above 70 | Source: TradingView
Looking at the chart, the RSI has closed above 70 three times since July 1, 2021, each time causing the price to hit the 20-day EMA within 7-30 days. Therefore, when the RSI is overbought, buying AXS is risky for traders and increases the likelihood of short-term losses.
Therefore, AXS could decline similarly in the coming days / weeks, with the next downside target being around $ 87. However, if price continues to move forward, as it did after the overbought signal from July, the downside target could be $ 90 or higher.
Hodl is a better strategy?
The 20-day EMA serves as a buy indicator for traders after RSI-led corrections. Specifically, the trader decided to buy the dip pending re-testing and closing the price above the previous high.
The result shows that traders who did not sell AXS during the correction to the 20-day EMA are making a pretty good profit on paper – the price has risen more than 2,500% since July 1st.
The growing utility of AXS in the virtual world of Axie Infinity (Lunacia) is one of the main catalysts for demand from gamers and traders. In particular, players manipulate the colorful creature Axies to obtain two types of tokens.
The first is the Small Love Potions (SLP) given to the winner of the match, which can be exchanged for cash or reused to breed new Axies. Meanwhile, the second token is AXS, which can be earned by winning seasonal tournaments or selling Axies on Axie Infinity’s dedicated internal market.
On Monday, Axie Infinity’s active users grew to 1.85 million, 4500% more than April, with total cumulative revenue reaching $ 815 million over the same period, according to a report. Token terminal. That’s what made Sky Marvis, the company behind Axie Infinity, the world’s fifth most valuable video game company by market capitalization.
Top game company in the world | Source: Messari
These strong fundamentals added traders’ confidence in AXS. This explains the possibility of recovery after a sharp correction in the 20-day EMA.
AXS Staking Service, start of DEX
The latest buying trend in the Axie Infinity market is due in part to a new feature that enables AXS holders to make profitable use of their tokens. Since its launch on Thursday, the staking feature has attracted more than 12.44 million AXS tokens (~ $ 1.88 billion at current rates).
dashboard Mark out AXES | Source: Axie Infinity
Staking effectively pulls the active supply of tokens out of circulation, combined with growing demand that drives up the price.
In the meantime, Sky Mavis has announced that it will launch a decentralized exchange on the Ronin sidechain, which is connected to Ethereum. The company’s goal is to provide players with faster AXS and SLP liquidity during the game without relying on cross-bridges to buy or exchange tokens.
Axie Infinity will raise $ 150 million at a valuation of $ 3 billion
According to CoinDesk, this Series B funding round is being led by the A16z mutual fund led by Andreessen Horowitz.
Axie Infinity’s final round of fundraising was a $ 7.5 million Seris A that was announced on May 11, 2021. Led by Libertus Capital, with participation by Alexis Ohanian, Mark Cuban, Collaborative Fund and 500 startups Synthetic Team.
Previously, Axie Infinity raised a $ 1.5 million seed round led by mobile game publisher Animoca Brands, which was announced on November 7, 2019.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
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