Ever since the Cryptocurrency market has entered the correction phase where Bitcoin, Ethereum and other altcoins have retraced back, investors and traders have started to question the market stability.
With this ongoing surge and plunge game, Axie Infinity too has been dragged towards bearish market.
Axie Infinity Drops By 30%
Axie Infinity recently lost $625 million after the hacking incident and this saw a downfall of 30%. The hacking incident involved Ronin Network, a play-to-earn gaming platform’s Blockchain.
In the early hours today, Axie Infinity dropped at $46.69 and at the time of writing, Axie Infinity has dropped again at $45.85 with a plunge of 8.99% over the last 24hrs.
This is the lowest since March 16 which indicates dipping buying sentiment among traders and investors.
TJ, an independent market analyst, claims that there is no sign of buyers even though price enters an area of attracting accumulators.
However, Sky Mavis, the company that built Axie Infinity, has claimed that they would reimburse all the users who lost money in the recent hack of $625 million. To keep up with the said promise, last week the firm raised $150 million led by Binance.
Axie Infinity has formed a death cross pattern between 200-day EMA (blue wave) and 50-day EMA (Red wave) indicating a more bearish trend.
Earlier, the region around the $45 level has set out an accumulation zone. On the other hand, as Axie Infinity tests key support level, this would lead its daily relative strength index (RSI) leading below 30, as an oversold signal. This suggests that Axie Infinity could see a bounce by the end of April.
AXS On The Verge To Break Wedge Pattern
As per Axie Infinity’s four-hour chart, AXS’s price is already oversold as its RSI readings are near 25. Also AXS’s falling wedge pattern is about to break out leading the pattern to the south though the AXS price is currently bullish reversal pattern in theory.
On the flipside, if Axie Infinity breaks below $45 which acts as a support key level, the currency could face a head-and-shoulder pattern on longer time frame charts and lead AXS towards $12.