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Axie Infinity blew up over the weekend, with its price on Friday evening dropping to nearly $15, only for it to skyrocket throughout Saturday and early Sunday. The AXS token’s value peaked at $18.73, but then it corrected to the current price of $16 in the second half of Sunday and early Monday.
Axie Infinity’s tremendous potential
According to the experts, the token managed to form a higher low, which was taken as the first big indicator of a potential trend reversal. Earlier, the project bottomed at $12.4, but the most recent bull run allowed the token to successfully break out of the 50-day EMA resistance level. What will happen next is still unclear at this time, but some assume that the project might use the former resistance as a way to launch itself back up towards the next barrier on the chart, which would be at around $35.
If this happens, it will represent a nearly 100% increase from where the token sits at the time of writing. Experts believe that this happened due to the recent rise of GameFi, which actually took the least amount of damage after the start of the bear market.
DeFi and NFT sectors were not as lucky, but GameFi managed to keep relatively steady levels throughout this year. This, in turn, allowed multiple projects to survive the bearish wave, at least for the time being.
During the crypto market recovery, Axie Infinity saw significant inflows from Ethereum whales, as it managed to maintain its position as one of the largest representatives of GameFi. As one of the most notable metaverse and blockchain gaming projects around, its token became one of the top 10 most purchased cryptos that managed to capture the interest of Ethereum whales.
Since then, AXS gained 45% to its value, and it is believed that Axie still has enough strength left to keep pushing further up.
AXS in 2022
Of course, Axie could not single-handedly resist the bear market that was strong enough to take Bitcoin from $68,000 to under $20,000 in less than 6 months. The token saw its own losses, dropping from $95 in early January to the current $16, which is not even its lowest price this year.
The coin broke a number of supports in the past 7 months, but whenever the bear market made a small break, AXS would immediately attempt a recovery. It happened in mid-January, then again in mid-February, and then once more in late March and early April. Now, with the prices attempting to surge again, it appears that the bear market might be taking another small break.
However, if this behavior is any indication, then Axie is bound to skyrocket as soon as the bearish part of the cycle officially ends, and the bulls come to take over right away, which might make Axie one of the best investment options right now.
To learn more visit our Investing in Axie Infinity guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.