The current trading price of #Axie Infinity is at $4.47, following an unsuccessful attempt to surpass the 50-day Exponential Moving Average (EMA), indicating a possible forthcoming decrease in value.
A decrease in price would lead to an additional 2.89 million $AXS being valued below their initial investment, culminating in a situation where 94.4% of investors would experience financial losses.
The primary factor contributing to the stagnant price movement is the inactivity exhibited by Whales, who possess a significant majority of the supply, accounting for 94% of the total.
The price of Axie Infinity has exhibited a downward trajectory since the commencement of the year subsequent to reaching its peak in late January 2023. The stock of AXS has the potential for upward movement, contingent upon a significant shift in the behaviour of a particular cohort from passivity to engagement. This particular group consists of the Whale addresses that have remained inactive for a period of around 17 months.
The price of Axie Infinity is nearing its lowest levels.
The current selling price of Axie Infinity is at $4.47, exhibiting a decline as it has been unable to surpass the 50-day Exponential Moving Average (EMA). As a result, the Relative Strength Index (RSI) declined below the neutral threshold of 50.0, indicating the potential development of a negative momentum. This may potentially trigger a subsequent decrease in the value of the cryptocurrency, causing it to surpass the current year-to-date low of $4.13.
The price of Axie Infinity is gradually approaching new lows in 2023, which may result in a significant majority of investors experiencing a financial loss of over 94%.
In addition to reaching a new bottom for 2023, the price of Axie Infinity is anticipated to decline below $4.00 and regress beneath the established downtrend line. The aforementioned boundary has been violated on a single occasion, namely during the middle of the month of August.
In the event that Axie Infinity price successfully rebounds from both the downtrend line and the $4.13 support line, it may potentially avert a significant decline. Moreover, in the event that the rebound momentum successfully propels AXS over the resistance level denoted at $4.84, it would render the bearish argument worthless, so allowing the cryptocurrency to reach a peak not seen in the last two months.
The likelihood of a successful recovery is minimal.
Currently, a decline towards the support level of $4.13 might have severe consequences for consumers, as a significant portion of the altcoin's supply is currently valued below this threshold. Based on the Global In/Out of the Money (GIOM) analysis, it is estimated that around 2.89 million AXS tokens, with a total value of over $13 million, are at risk of incurring losses.
Based on the measure, the procurement of this product was conducted at an average cost of $4.52, with the minimum recorded buy price being $4.39. If the price falls below this threshold, all available supply would be valued below its acquisition cost, leading to an increase of 1.59k addresses in the group of investors experiencing losses.
Currently, around 93% of AXS holders are not seeing profits. If a further 1.59k addresses were included, this proportion would increase to 94.4%. However, it is intriguing to note that the occurrence of this phenomenon is ultimately determined by the same group of organisms that may potentially experience these detrimental consequences - whales.
Whale-held AXS addresses presently possess over 255 million tokens, equivalent to a valuation exceeding $1 billion, constituting 94.5% of the total circulating supply. Hence, their behaviours exert a significant influence on the price as well. Nevertheless, these investors have remained vulnerable for a duration of around 17 months.
The transaction volume has exhibited a consistent average of less than $5 million since May 2022, occasionally seeing intermittent increases. The occurrence of these spikes has seen a notable decline since the commencement of the year 2023, and during the course of the preceding nine months, the mean value has decreased to $3 million.
The dominant ownership of whales in the market has led to a dearth of transactions, so impeding any potential rebound and perpetuating a sustained downward trend in prices. If this trend persists, there is a possibility that the price of Axie Infinity might reach new lows in 2023. Therefore, it is imperative for investors who wish to engage in AXS to closely monitor the trading behaviour of large-scale investors, sometimes referred to as "whales."
