Axie Infinity: Can 30% rally in AXS price sustain on the immediate short term?

Key Takeaways:

• Axie Infinity underwent a giant price action and surged by more than 32% in the past couple of hours after closing the previous day’s trade on a bullish note at $8.79 with a market capitalization of $886.44 million and a circulating supply of 99.84 million.
• The AXS price appears to have ranged beyond the bearish capitulation and hence a notable upswing may be embraced very soon.

The popular blockchain-based Play-2-Earn platform Axie Infinity was inspired by popular games such as Pokemon and Tamagotchi. The platform allows players to collect, breed, raise, battle, and trade Axies, which are token-based creatures. Each Axis represents a different part of the body, each with its own move in the battle. 

The Axie Infinity platform also allows users to earn tokens while playing. The Axies are collectible and can be sold on the P2P Axie in-game marketplace. The working of the blockchain mainly consists of 3 steps, buying Axies, participating in battles with other players, breeding Axies, and selling them on the marketplace. 

The Axie Infinity is empowered by its native token AXS which can be staked and earn rewards. The holders can also vote on the proposals for the network upgrades. It can also be traded in the open market which appears to have to gear up for a massive upswing.

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Recent Updates:

• Axie Infinity recently released an article describing the crucial part of the Axie ecosystem, the Axie Core which is an Axie experience and not tied to a particular game.

1/ Dear Axie Community,

We’ve penned an article laying out the vision for a crucial part of our ecosystem: Axie Core.

Axie Core is eternal and not tied to one particular game; it’s the universal Axie experience and aesthetic.

📜 | https://t.co/NJIlqSrqz6 pic.twitter.com/olZNsvuzLh

— Axie Infinity | #AxieOrigins, #AxieHomeland (@AxieInfinity) December 5, 2022

AXS TECHNICAL OVERVIEW

AXS/USDT | Source: Tradingview

• The Axie Infinity (AXS) price was stuck up within a deep bearish trend for quite a long time and stuck to the lower support.
• The sudden surge in the price enabled the token to rise beyond the crucial resistance while the breakout yet awaits a validation.
• The coming couple of hours appears to be pretty crucial as if the price successfully closes the day’s trade above the resistance, a notable upswing may make its way out.
• On the contrary, if the AXS price fails to clear these levels, it may further drop to its initial levels, losing all that it gained in the past couple of days.
• Meanwhile, the RSI is about to reach the upper resistance, post to which a minor pullback may be expected, but MACD continues to remain bullish for the next couple of days.

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Major spike in AXS Development Activity

AXS Development Activity | Source: Santiment

The development activity of any project is carried out in its GitHub public repositories which is not hidden from the public. The development activity indicates the seriousness of the project’s team regarding its business proposition. The rise in the activity signals that the project may soon witness new features and is less likely to be an exit scam. The development activity is measured in the number of events which is nothing but the commits where the developer’s work is encapsulated. 

The development activity of Axie Infinity has surged extremely high which signifies the developers are extremely committed to building the network. The development activity has dropped below 1 at around 0.366 in recent times but with the recent price rise, the activity spiked high to reach 3.23 at the moment. It also indicates new development upgrades or features could be coming in soon.

AXS Supply on Exchanges takes a dip

AXS Supply on Exchanges | Source: Santiment

The supply on exchanges basically means the number of assets being stored in the wallets held by the exchanges. A rise in the supply indicates the selling pressure being mounted due to constant selling carried out by the market participants. On the contrary, a drop in the supply on exchanges indicates that the wallets have dried up due to extensive buying carried out by the traders. Hence an increase in demand with a drop in supply, further elevates the price higher. 

The supply on exchanges had dropped from 4.23 million to as low as 1.42 million before the end of October which rebounded finely in November. The levels surged beyond 3 million in the next couple of weeks mounting the selling pressure which is believed to have been released in the past few hours. 

CONCLUSION

The Axie Infinity price underwent a massive surge in the past 24 hours which slashed the bearish trajectory. Meanwhile, the rise in development activity with a slight drop in the supply of exchanges indicates the resurgence of the bullish trend ahead. Hence, if the AXS price manages to close the day’s trade on a bullish note, a significant upswing may embrace the rally by the end of 2022. 

Prices as on 6 December, 2022.