* AXS reached its all-time high price of $166.09 on November 6, * Its price now is below $10
* Axie Infinity has not yet recoverd after its Ronin bridge was hacked in March Axie Infinity (AXS), the ERC-20 utility token that also functions as a governance token, has fallen below its long-term $9.50 support area, suggesting it could further nosedive to its next long-term support at $3.40.
A year after AXS achieved a milestone and reached an all-time high of $166.09, the native token of the hit P2E game – ‘Axie Infinity,’ saw an all-time low of $5.74. Following the price falling below its horizontal support area of $9.50, this bearish indicator could mean investors would see the speed up of the token’s further downward movement.
The weekly Relative Strength Index (RSI), which calculates the change and speed of price movement, is under 50 and continues to decrease. It has not shown any signs of changing in the bullish direction. In addition, the RSI suggests that it will soon approach oversold territory.
This could be a positive indicator of a price increase, but it could also last for a long time. In other words, being oversold does not necessarily mean that a price rally will come soon, or ever.
Axie Infinity’s next support region is at $3.40 and unless the token achieves a weekly close higher than the $9.50 support area, a plummet toward $3.40 is the next anticipated price movement. When this happens, AXS will further nosedive to another 50% price decrease.
Axie Infinity traded at $7.63 on Wednesday, showing a double-digit 17.58% drop over the past 24 hours. At the time, it showed an increase in trading volumes with the Volume to Market Cap ratio standing at 0.257.
The downtrend of AXS can be attributed to the surge in selling activity happening in the market. The bears seemed to be overwhelmed by the intense pressure, which would further send the price of the token down if it continues.
Thursday, the RSI entered extreme oversold territory and bounced outside of it, showing it was trading in green. This could trigger a relief rally and continue until the price reaches $8.11 and could even trade until the $9.50 resistance region in a more bullish scenario.
Unfortunately, unless Axie Infinity trades at this level, it can’t be considered bullish. AXS’s price was nowhere near this a year ago. But after hackers stole nearly $650 million from its Ronin bridge in March, things started going haywire.
The game’s active player count dropped and despite the updates rolled out to the game, post the million-dollar hack, AXS price did not return or come near its triple-digit ATH. As of 1:31 p.m. ET on Thursday, AXS was trading up 6.43% at $7.32 with a 24-hour volume of $190,890,948, based on the latest data from CoinMarketCap.
In-game assets called ‘Axies’ are seen in this undated handout image from the blockchain-based game Axie Infinity, which is owned by Sky Mavis. Sky Mavis/Handout via REUTERS Reuters / Sky Mavis