Are the bears still in control?

Axie Infinity (AXS) entered a bearish trend after a 5% negative performance in February.

The continued decline in whale trading and price volatility suggests that the bears may remain in tight control in the coming weeks.

axs whale missing in action

Axie Infinity is one of the top 10 ranking GameFi projects globally. In February, its native AXS token recorded an impressive 5% drop in price. And clearly, activity from large investors has decreased significantly on the blockchain gaming network over the past 30 days, indicating an extended price bearishness.

According to Sentiment, a well-known on-chain market intelligence platform, the number of whale transactions recorded on the Axi Infinity network has dropped by nearly 80% since the beginning of February.

Past AXS price declines have often been accompanied by a comparable decline in large trading volume.

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

Sentiment recorded 66 AXS transactions valued at more than $100,000 at the end of January 31, and as of the most recent count of March 14, that figure has dropped to 14.

Furthermore, a closer look at the on-chain data trail of the AXI Infinity Network shows that price volatility has reduced.

The AXS price volatility ratio, measured on a four-week interval, hit a 3-month low since the close of trading in February.

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

From 0.20 recorded on 1 February, the AXS Price Volatility Ratio was hovering around 0.12 on 14 March. In the past, when volatility dropped, it often coincided with price drops on the GameFi network.

Furthermore, crypto investors often look for high-volatility assets because they tend to move more quickly and have larger price changes. Therefore, decreasing volatility on the AXS network could trigger short-term traders to sell their coins as they seek to avoid the steep price action in the coming weeks.

AXI Infinity Price Prediction: Fall below $6?

intoblock depth of exchange market The chart provides a data-driven estimate of potential AXS price movement in the coming weeks.

Market depth or bid-ask spread is a divided sum of limit orders placed by AXS holders on top exchanges. It shows the major support and resistance points in relation to the current prices.

The current bearish trend is likely to stall at $6.5 where a buy wall of 500,000 orders totaling 137,000 AXS is set to act as a strong support. If it does not hold, a further drop to $5 could be on the horizon.

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

Conversely, if the trend turns bullish, $9.72 is a key resistance point as the exchange’s total order book currently shows 91,000 sell orders for approximately 1.5 million AXS tokens.

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


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