There is bad news for the popular metaverse coin Axie Infinity (AXS). Altcoin’s monthly revenue is down over 98% from its peak of $364.4 million in August 2021. According to crypto analyst Yashu Gola, it is therefore possible for the altcoin price to go 95% lower in 2022. We have prepared Yashu Gola’s analyzes and reviews for our readers.
Altcoin is at great risk of failure
Dubbed the ‘inverted cup and handle’, the pattern is defined by the broad crescent shape followed by a modest upward retraction. Typically, the price drops after breaking out of the ascending channel. Next comes another break under the neckline support of the cup and handle. In the meantime, it is necessary to look at the rules of technical analysis. An inverted cup and handle breakout sets the price at a level equal to the maximum distance between the top of the structure and the support.
The price increase of the AXS in the second half of 2021 and then its complete disappearance in 2022 creates a pattern. This paints a crescent-shaped trend picture that looks like an inverted cup. Also, there was a 50% price increase after the local low of $11.82 on June 18. This creates the opposite direction as shown below.
AXS three-day price chart with inverted cup and handle pattern / Source: TradingViewTherefore, the technical characteristics of AXS show a downward trend. We make a calculation taking into account that it falls under the inverted handle spacing. In this case, that means a target of $1, down about 95% from today’s price. At press time, AXS is trading at $17.29, up 3.37% on a daily basis, according to data from CoinMarketCap. However, the altcoin is about 90% off from the $165.37 ATH level.
Bad news shook Axie Infinity
The extreme bearish outlook comes primarily after a depressive trend elsewhere in the crypto market. However, Axie Infinity is a gaming platform that pays its user to play. His continued ability to do so is undermined by his collapsing vision.
Additionally, as you follow on Kriptokoin.com, we received news of a $600 million hack earlier this year. This has also reduced demand for AXS, which acts as a management token and fiat currency in the Axie Infinity ecosystem. According to data tracked by Token Terminal, Axie’s monthly revenue has dropped over 98% from its peak of $364.4 million in August 2021. This poor performance is also an indicator of the decrease in demand.
Axie Infinity monthly revenue / Source: Token TerminalBut crypto expert Yanto Chandra says Axie Infinity may not go away completely. According to the expert, the altcoin will forge a new destiny and reinvent itself in the rapidly changing GameFi environment.
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