One of the biggest success stories in the world of decentralized gaming, Axie Infinity went through a rough patch a while ago. First, the broader market started to decline after November 2021, bringing down all altcoins. AXS, the original token, lost nearly 75% over the next two months.
Soon after, it started to consolidate on the charts. Then the Ronin hack happened, an episode in which cryptocurrencies worth nearly $625 million were stolen by hackers. However, the altcoin’s price action did not react too much to that news.
Problems with the cards?
On the charts, the price consolidated in a wide range, roughly between $50-70.
$70 turned out to be a still level of resistance that would be hard to break. However, the good news is that the price is trading very close to that resistance and any sudden burst of positivity could push the alt’s value above it.
With the RSI at comfortable levels around 62, a further rally from this point should not be too difficult, provided market conditions are good.
On-chain stats seemed to indicate growing conviction and optimism among investors and stakeholders in the Axie Infinity ecosystem. One of the biggest jumps in terms of on-chain metrics for AXS has to be development activity.
It saw a massive jump on March 24, while also holding those levels for more than a week and a half.
In keeping with the aforementioned uptick, the token also saw one of the biggest volume spikes on the blockchain in 2022. This was also followed by a hefty rise in price – adding even more weight to the overall bullishness.
As can be seen from the attached chart, every price rally in March has been accompanied by strong volumes.
At the end of March, AXS also saw a significant dip in the MVRV-Z score, according to Santiment data. This despite the fact that there was only a small price drop at the same time. This suggests that the market value is well below the realized value. Historically, buying during these periods has produced exorbitant returns due to attractive valuations.
So, all things considered, investors aren’t too afraid to sell their positions and exit their position in AXS already. Evidence suggests that persuasion is still present in the coin and the gaming ecosystem as a whole. So buying can be a good idea in the medium to long term.