Kriptokoin.com reported earlier in this article, the price of Axie Infinity (AXS) has passed since the news of the $625 million hack targeting Ronin Network, the blockchain of the play-to-earn (P2E; play-to-win) gaming platform. In two weeks, it has lost almost 30 percent of its value. AXS dropped to $46.69 on Monday, its lowest price since March 17. The price action reveals the weakening buying sentiment among investors after the cyberattack. So will the decline continue?
This metric signals a bearish metric for AXS price
Independent market analyst TJ explained that even when the AXS price has fallen to levels that have historically attracted investors, buyers are not emerging. For example, AXS fell below the demand zone that TJ pointed out as a possible turning point over the weekend. This move risks sending AXS price to the range support target around $45. Although Sky Mavis, the developer of Axie Infinity, said that it will compensate all users lost in the $ 625 million cyberattack, the negative mood in the market remains. The company announced last week that it has raised $150 million led by Binance as an indication that it will keep its promise. In addition, the death cross formed by the 20-day exponential moving average (EMA; green wave) and the 50-day EMA (red wave) on the AXS chart also gives a bearish signal.
around $45 previously served as a savings zone for investors. The last time the cryptocurrency tested this support in March, it had risen to $75 by experiencing a 70 percent exit. Similar tests were experienced in January and February, and the AXS price dropped to around $45. If AXS tests the key support level, the daily relative strength index (RSI) will also drop below 30 points, the “oversold” limit. This may mean that the price of Axie Infinity is expected to recover in April.
Altcoin chart completes the descending wedge formation by breaking down
AXS is currently in the “oversold” zone on the four-hour chart, with the RSI indicator measuring around 25 points. Cryptocurrency, on the other hand, completes the descending wedge formation, which is a turn formation that theoretically results in an uptrend, by breaking down. The support cross on the RSI indicator, consisting of the oversold limit and the accumulation zone around $45, increased the likelihood of AXS re-entering the wedge zone and breaking up on the upside soon after.
AXS/USD could rise towards $58, which acts as a key resistance in March 2022 in such a scenario. A drop below $45 could trigger AXS’s head-to-shoulders pattern on longer timeframes. Because $45 also intersects the neckline of this formation. A regression below the neckline in the H&S pattern may result in a decrease of the maximum distance between the head and shoulder line. In this case, AXS’s downside target would be $12.
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