Axie Infinity's AXS token has been seeing a stunning ascension in the arena of cryptocurrencies. It has witnessed an astonishing spike of over fifty percent in the previous twenty-four hours and is presently trading at $9.26. With a market value of $1.4 billion and a circulating quantity of 132 million coins, AXS has been catapulted to the forefront of gaming cryptocurrencies as a result of this boom.
It is possible to attribute this remarkable upsurge to a recent significant game update that has introduced a transformational component to the Axie Infinity environment. This upgrade is the driving force behind this extraordinary upswing.
The evolution of Axie Infinity completely changes the game economy.
Players will have the option to develop their digital companions with extra traits and powers thanks to this update, which focuses on the evolution of Axies, which are animals that are comparable to Pokemons.
A deflationary process is introduced as a result of this development, which brings about significant changes to the economy of Axie Infinity since it goes beyond the surface adjustments. Because of this approach, the total number of Axies may be reduced, which would result in an increase in the value of the Axies that are currently in existence and would also enhance the connections between players and their virtual counterparts.
With that being said, a note of warning emerges in the middle of this surge. The price of AXS has been gaining pace as a result of the market's resurgence and Bitcoin's acceleration toward $45,000; nonetheless, there are concerns regarding the possibility of a sudden fall.
An increasing number of people are getting concerned about impatient holders who are struggling with losses. A considerable number of sellers were driven to liquidate their holdings as a result of the spike. According to statistics provided by Coinglass, nearly $2.4 million worth of short contracts were liquidated, which contradicts the negative forecasts that were made.
The market is adjusting, and the data indicates that there is a possibility of a large correction occurring. The number of addresses that are lucrative has climbed to over thirty percent, but this figure is still outnumbered by the fifty thousand holders who are now in the red.
In light of this scenario, it appears that the persistent upward trend in the price of AXS may encourage holders who have suffered losses to leave the market in an effort to reduce the amount of money they have lost.
The Technical Analysis of AXS: Some Important Levels and Caution
In terms of technical analysis, AXS has created important resistance levels at $10.41, $11.37, and $12.01. Additionally, there is immediate support at $9.09, and additional support can be found at $8.54 and $8.06.
The Relative Strength Index (RSI), which is an important indication of market mood, is now at a high level of 81, which indicates that the market is showing signs of being overbought today. Although this indicates that there is a strong purchasing tendency, it is important to exercise caution because an overbought state may signal that there is the possibility of reversals in the market.
A substantial game update has been the driving force behind the spectacular spike that Axie Infinity's AXS has seen, which has amplified the enthusiasm that is present in the digital asset scene as the new year draws near.
In spite of the bullish trend, caution is still prevalent, as market players are apprehensive of the possibility of a reversal and holders are struggling with impatience as a result of losses.
When it comes to the ever-changing cryptocurrency market, the new economic variables that were added by the game update provide an additional degree of fascination to the direction that AXS is following.