Axie Infinity‘s (AXS) year-long downtrend extended to new lows after breaching the critical support level of $5.92 on June 10. The token had also experienced a rally in January, reaching its yearly high of $13.95. The recent price plunge could be attributed to the cautious approach by investors following SEC’s lawsuits against Binance and Coinbase over AXS listing.
In the first quarter of 2023, AXS mirrored Bitcoin‘s (BTC) performance in yielding positive results. However, the latest price movement could suggest a potential decoupling of Axie Infinity from Bitcoin, particularly as BTC’s recapture of the $26,000 price region had no impact on AXS.
The Latest on AXS Price
Axie Infinity’s fall from the resistance level of $12.60 in March led to the gaming token’s price dropping below the $9.48 support level. Numerous attempts by the bulls to reclaim the support level were thwarted by steadfast bears, gradually pushing AXS towards the key support level of $5.92.
This support level was fundamental to the bull run that took AXS to its highest levels in December 2022. However, bears took full advantage of regulatory concerns surrounding AXS to turn this critical support level into resistance.
Meanwhile, the Relative Strength Index (RSI) sharply descended into the oversold region, highlighting sellers’ leverage in the short term. The OBV also dropped by 6.61 million in the last seven days, indicating diminished demand for Axie Infinity.
The sharp 22% price plunge in the last 48 hours exposed the intense selling pressure on AXS. As a result, sellers could attempt to pull AXS down to its November low of $4. On the other hand, bulls will need to swiftly reclaim the $5.92 support level before retesting the $9.48 resistance level for a potential uptrend.
Axie Infinity’s Funding Status
Funding Rate data for a 12-hour timeframe from Coinalyze revealed continuous negative funding rates since June 6. This shows a significant drop in deployed capital and highlights limited demand for AXS.
Open Interest (OI) reflected the bearish trend in the market. With OI declining alongside the price, it signaled exhaustion of buyers. This underlines the continuation of a bearish momentum for Axie Infinity in the short term.
