Axie Infinity‘s (AXS) price is currently dwindling, touching a three-year low in the midst of an ongoing legal feud with the US Securities and Exchange Commission (SEC). In addition to the price dip, on-chain data suggests that players are gradually abandoning the GameFi protocol. Against this backdrop, one wonders if AXS can extricate itself from this falling trend.
Axie Infinity Latest Status
Following TheSanbox (SAND) and Decentraland (MANA), Axie Infinity (AXS) slipped to the third spot in the global GameFi ranking by market value. This latest price correction was triggered after the US Securities and Exchange Commission listed AXS among the crypto currencies classified as securities. What chance does the AXS price stand of recovering amidst such a negatively charged atmosphere?
Axie Infinity’s native token, AXS, derives most of its utility and appeal from players who use it to pay for in-game assets and to gain exclusive access to crucial ecosystem advantages and features. As the market FUD stemming from the SEC pervades the Axie Infinity ecosystem, active players have begun to abandon the GameFi protocol. On June 10, AXS had 2,000 active addresses. However, by the close of June 19, this figure had dropped by 89% to 229 active wallet addresses.
Furthermore, it appears that major institutional investors are losing their faith in AXS price expectations amidst the current market sentiment. IntoTheBlock’s graph below shows that AXS recorded only two large transactions in the last six business days. Strikingly, it recorded zero in the last two trading days.
Trust in AXS is Declining
According to IntoTheBlock’s IOMAP distribution data, the UNI price is likely to enter a downward trend towards $3.75. However, 35 investors who purchased 55,000 AXS tokens at a minimum price of $4.70 are expected to provide significant support at the moment. If this support folds as expected, Axie Infinity’s price could drop towards $4.05.
Nevertheless, AXS bulls may reject this bearish structure if they can rise above $5 against the game flow. However, as seen above, 1,020 addresses holding 2 million AXS tokens at a maximum price of $5.02 could form significant resistance. If this resistance level breaks, the price can eventually reclaim the crucial $6 level.
