A super bull rally in the Axie Infinity market caused its native token, Axie Infinity Shards (AXS), to gain 972% in just 23 days. However, this trend now threatens to be exhausted.

Fractal Fib Price AXS

AXS / USD fell to $ 15.41 at press time and is also the lowest in 24 hours, hitting a high of $ 29.86 after 5 days. While trading at lower levels, the pair managed to neutralize overbought sentiment when the daily relative strength index (RSI) crossed the 84 mark last week, suggesting sentiment.

Comparison of Axie Infinity’s current Fibonacci setup with that of mid-March | Source: TradingView

AXS / USD is showing signs of rebounding at $ 16.38, which coincides with the 61.8% Fibonacci, forming a Fibonacci retracement chart going from the swing high of 23.98 to the swing low of $ 4.07 is formed. These two levels represent the upper and lower ends of the current AXS / USD curve range.

Another support is the 20-day exponential moving average (20-day EMA; blue wave). Waves (currently near $ 15.38) were instrumental in reinforcing the uptrend in AXS / USD earlier this year, limiting the sharp downward move and bringing the price in line with the previous uptrend.

Previous top-to-bottom Fibonacci retracement setups represent the 38.2% Fibonacci level as a major reversal indicator. Example: AXD / USD rebounded nearly 225% after testing $ 3.62 – Fibonacci 38.2% in the late March pullback.

Similarly, this level stopped AXS / USD from attempting to fall in April-May before giving up and paving the way for a pullback, as shown in the chart below.

Compare AXS’s current and April-May Fibonacci setups | Source: TradingView

Hence, the previous fractal (the pattern now repeating itself) suggests an extensive downward correction for AXS in the upcoming sessions. The current Fibonacci level of 38.2% ($ 11.68) is serving as a temporary profit target for the bears.

However, a break below the 38.2% Fib level could cause AXS / USD to hit a confluence of 23.6% Fibonacci support ($ 8.77) and the 50-day simple moving average (around 8, 29 USD).

Basic statistics

Despite the recent downward movement, AXS is up over 2,500% year-to-date.

In particular, this cryptocurrency serves as a governance token for Axie Infinity, an online video game based on a non-fungible token (NFT) developed by the Synthetic Teamese studio Sky Mavis. Players compete against each other and win rewards in the form of internal tokens called Small Love Potion (SLP). In return, they can use the SLN to breed digital pets, known as axies, in-game.

This way, players can earn an average of 100 to 200 SLP tokens, which is roughly the equivalent of $ 77.8 to $ 155.6 per day, at an exchange rate of $ 0.77 per token.

The play-for-money feature is warmly welcomed by crypto enthusiasts. As of last week, Axie Infinity had earned more than $ 84 million in fees in the last 30 days, more than both Bitcoin and Ethereum in log revenue, and more than any leading decentralized financial application including PancakeSwap, MetaMask, MakerDAO, Synthetix …

Axie Infinity revenue compared to other decentralized financial protocols | Source: Token Terminal

In addition, while AXS can be traded on multiple platforms, 97% of the volume comes from the Axie Marketplace, a special portal for trading digital pets and transferring fees to the Axie Treasury.

The Treasury Department currently holds approximately $ 23.42 million in marketplace fees and $ 76.15 million in digital pet breeding fees, according to Axie World.

Axie Treasury is currently valued at $ 99.57 million | Source: Axie World

In return, the fee is used as a weekly profit for users who use AXS to operate and manage the Axie protocol.

Mason Nystrom, a researcher at Messari, commented:

“Axie Infinity has set itself apart from the rest of the crypto gaming sector and continues to grow. The next big milestone will be the introduction of the virtual world version of Lunacia in the fourth quarter. “

More sales compared to competitors

Meanwhile, statistics from tokenterminal.com show it clearly outperforms its competitors in terms of revenue from the Axie Infinity protocol. Axie Infinity’s protocol revenue dwarfs projects like Pancakeswap, Metamask, Maker DAO, Sythetix, and Sushiswap.

While Pancakeswap’s 30-day stats in second place shows revenue from the log of $ 11.9 million, Axie Infinity reached $ 84.9 million. Records for 7 days show revenue from the Axie Infinity protocol at 38.3 million, while Pancakeswap is at $ 2.3 million.

The largest pair with AXS is USDT as it accounts for 83.88% of all AXS transactions according to cryptocompare.com statistics. USDT is followed by BUSD (7.71%), BTC (6.41%), USD (0.97%) and BNB (0.84%). Although SLP has fallen more than 11% in the past 24 hours, the token is still up 93.6% in 3 months. AXS fared much better, up 87.5% in just 2 weeks, and 3 month data shows AXS is still up 281.4% despite losses this week.

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