Axie Infinity (AXS) Falls Beneath Support Area; Staring at 50% Drop

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  • AXS hit its ATH at $166.09 on 6 November last year.
  • Its price hovers below $10 at the moment.
  • Axie Infinity is yet to recover from the March 2022 Ronin bridge hack.

Axie Infinity is an ERC20 utility coin that also serves as a governance coin. Meanwhile, the alternative token has dropped beneath the $9.50 long-term support, indicating potential further dips approaching the subsequent foothold at $3.40.

The governance coin of the hit play-to-earn game Axie Infinity suffered dips since hitting its $166.09 all-time high a year ago. Bearish tendencies saw AXS hitting the $5.74 all-time low. Meanwhile, the latest price dip beneath the horizontal foothold of $9.50 means a bearish bias that might welcome further downsides for the alt.

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The weekly RSI (Relative Strength Index), which measures the speed and change of price action, swayed beneath 50, exhibiting decline tendencies. The indicator is yet to show chances of flipping bullish. Moreover, the Relative Strength Index seemed primed to approach the oversold region soon.

That could be an optimistic indicator, suggesting potential price surges. Meanwhile, oversold conditions do not mean price rallies will emerge soon. AXS’s next reliable support zone stands at $3.40. The alternative token needs a weekly close above the $9.50 foothold to escape declines toward $3.40.

Meantime, such a dip could attract another 50% price fall. While publishing this blog, AXS changed hands near $7.63, losing 17.58% double-digit amid escalated bearishness. Its trading volume increased, whereas the Market Cap to volume ratio hovered at 0.257.

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Economists attribute AXS’s downtrend to the increased selling activity within the marketplace. Crypto bears seem to stiffen their grip, and investors might expect more price declines in the upcoming sessions.

Thursday sessions saw the Relative Strength Index entering the highly oversold region before bouncing outside the area. That shows it hovers in green and such developments might welcome a respite until the price hits $8.11 or even the resistance at $9.50.

Meanwhile, Axie Infinity has to explore the mentioned areas to welcome bullishness. The alt remained far from its price levels a year ago. Moreover, the March 2022 Ronin bridge attack that saw hackers escaping with approximately $650M saw things going haywire for AXS.

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