Bitcoin continues to find buyers at $29,180 after the release of the FOMC Minutes. The price briefly dropped below the $29,000 level today. As BTC trades in a tight range, altcoins are showing negative performance. This can be attributed to the lack of volume and weak interest in the market. So, what can we expect from the AXS Coin price during this period?
AXS Coin Analysis
After several attempts over the past month, Axie Infinity (AXS) finally broke below the $6 support level on August 12. The current data amidst the increasing downward momentum provides more information about the direction of the price.
AXS Coin, which continued near the $5.5 level with a 7% drop, has not been able to recover after the recent BTC crash. We have seen double-digit losses in altcoins today, indicating that the expected volatility could lead to a further decline.
The AXS price is currently fluctuating between $5.37 and $5.5. The P2E token, which has dropped by 24% from its peak of $6.9 last month, is now in oversold territory.
AXS Coin Price Prediction
Since the retreat from the $6 support on August 12, we have seen a rapid decrease in the NVT ratio for AXS. Between August 12 and August 16, AXS witnessed a surprising 85% drop in the NVT ratio, from approximately 3,571 to 507. The NVT ratio examines the relationship between the current market value and the fundamental transaction activity in a blockchain network. When it falls for a long period, it indicates that the token is oversold and may soon rise. If this scenario unfolds, the bulls will need to build a strong buy wall at the $5 support.
As shown below, most investors who bought AXS in the last 30 days would incur a roughly 10% loss if they were to sell today. According to MVRV data, the current price is not a good selling zone for the majority of investors.
According to the IOMAP data provided by IntoTheBlock, 819 investors have purchased 40,560 AXS at a cost of $4.93. This region is likely to act as support. However, if there is a BTC crash that leads to investors incurring losses, the AXS Coin price could drop to $4.5.
In order to invalidate the bearish scenario, the price will need to surpass and close above $7. The biggest obstacle to the bullish scenario is the $6.17 resistance.
