After a 15% decline, AXS investors should likely “stand still”.
The current market situation only favors shorts. When the overall market collapsed significantly on January 5th, the bears were able to take command. This is the second largest drop in weeks as the entire crypto market first lost 8.25% on December 28 and then lost over $ 168.3 billion (7.6%) in 24 hours.
AXS leads the drop
At the top of this downturn is AXS, which has plummeted more than 15.51% in the past 24 hours. Remarkably, AXS has been moving in line with the general trend of the entire market for the last 2 months.
As a result, this GameFi token is down 53.07% from ATH to $ 166.3.
AXS price promotion | Source: TradingView
This happens regardless of whether the AXS Ronin Bridge has higher inflows than outflows, at least for Ethereum. For Axies, on-chain data shows outflows nearly 5 to 10 times higher than last week’s inflows.
AXS net current on Ronin Bridge | The source: dune
AXS holders are also doing nothing on this macro decline as there is no solid incentive to move their assets. For this reason, buying activity is currently increasing. In fact, more than 4.7 million AXS were bought by exchanges within 2 months.
Delivery of AXS on the exchange | Source: Santiment
Interestingly, this behavior can continue in the future. Mainly because the facility looks profitable at the moment as the entire network is still profitable. Note the status of the investors, approx. 96% of all addresses are safe, no loss.
Profitable AXS investors | Source: Intotheblock
Hence, new investors have stepped into the right entry point. However, AXS is currently at a one-month low. In addition, the Axie team is further developing the network. Recently on the schedule of White paper (White paper) they reduced the AXS staking reward from 2 million to 1,566 million per month.
On the flip side, new investors should be wary of a possible drop in price as the altcoin closely tracks BTC’s movements due to its high correlation at 0.94.
Correlation between AXS and Bitcoin | Source: Intotheblock
In conclusion, it is best to wait for the green candle before entering.
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