• Axie Infinity price is close to hitting the December 2022 lows of $5.85.
  • AXS holders have been actively selling following the 13% crash in the last three days.
  • Investor participation also jumped significantly as bearish concerns rose in the crypto market.

Axie Infinity price, following the broader market cues, is trending downwards for the moment as the bearishness in the market has grown considerably. Incited with the regulatory crackdown by the Securities and Exchange Commission (SEC), the investors have resorted to offloading their holdings for now.

Axie Infinity price nears key support level

Axie Inifity price trading at $6.25 is nearing December 2022 lows of $5.85, a level that has been tested only once in the last six months. The relentless crashes of this year have contributed considerably to the price fall, including the 13% crash in the past three days.

AXS/USD 1-day chart

AXS/USD 1-day chart

This has led to the investors now setting a selling mindset which is visible in the on-chain performance of the cryptocurrency. Between May 18 and at the time of writing, more than $7.5 million worth of AXS has been sold back to exchanges since recovery, or the chances of one have not been observed yet.

Axie Infinity supply on exchanges

Axie Infinity supply on exchanges

This selling is also backed by the fact that investors’ deposits spiked to a five-month high. Historically, spikes on this metric have only been observed at peak prices thatmark the market top. Usually, this is proceeded by selling and correction. But this time around, the spike is not the result of a market top but just selling since the price is at a six-month low right now.

Axie Infinity active deposits

Axie Infinity active deposits

Therefore, this is an indication of the excessive bearishness, pessimism and fear of losses in the investors, which is also noted by the sudden jump in their participation. Active investors akin to active deposits observed a spike over the last week, wherein their numbers grew from 199 to 419, marking a 110% increase.

Axie Infinity active addresses

Axie Infinity active addresses

Thus if AXS holders can bear such an impact on the Axie Ininifty price, it is bound to potentially decline and fall through the support level of December 2022 lows at $5.85. However, if the same investors stop selling, they could potentially pull the price back up toward the barrier at $7.25, which also coincides with the 50-day Exponential Moving Average (EMA).


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. Bullish divergence on the RSI and the Awesome Oscillator indicators signal a potential reversal and upward movement in ZIL price in the coming days.

More Cryptocurrencies News

MATIC sets for a rally as Polygon Foundation confirms the migration date

MATIC sets for a rally as Polygon Foundation confirms the migration date

Polygon (MATIC) price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. The Polygon Foundation officially announced on Thursday that September 4 is the migration date for MATIC to POL.

More Polygon News

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million.

More Bitcoin News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis

BTC

ETH

XRP