Today we have seen the movement of altcoins in the GameFi sector, and AXS Coin is giving a significant rally signal. Investors had distanced themselves from tokens like GALA, APE, and AXS after the hype in the metaverse sector weakened. However, the optimism that the bear markets are coming to an end and the expectation of growth in the GameFi sector are driving the movement of altcoins.
October has been a great month for Axie Infinity. The price of AXS Coin has increased by 43% in 10 days. The price, which rose from $4.1 to $5.83 between October 19th and October 30th, can further grow with the interest in the GameFi sector. GALA Coin is also going through a similar process. However, the rally in AXS Coin is not solely due to the increase in BTC price.
When we delve into the network fundamentals, we see that some on-chain data provides more information about the rise of AXS Coin. It appears that the Axie Infinity ecosystem consistently increased the number of active players weeks before the price breakout last week. The number of daily Active Addresses interacting with the Axie Infinity gaming network has increased throughout the month.
As shown in the CryptoQuant chart, there were 173 active addresses on October 15th, and this number reached the peak of 484 addresses in 100 days on October 29th.
Not surprisingly, the 180% increase in the number of active users between October 15th and October 30th coincided with a 43% price rally. We were talking about how the decrease in active addresses, i.e., the interest of AXS players, could cause the price to drop during the toughest days of the bear market, and that’s exactly what happened. Now, there is a different picture, and as long as active addresses remain strong, the demand for AXS Coin can increase, leading to a price rise.
The MVRV ratio of SLP is increasing, indicating that players in the network are making more profits. Therefore, ecosystem participants who own AXS Coin have fewer reasons to sell, and this should push the price up.
On-chain cost data initially shows that the $7 target can be tested for AXS Coin. If this rally is not suffocated by profit-taking, investors can aim for double-digit peaks. The price of AXS Coin, which has not exceeded $10 since March 2023, seems to be able to surpass this critical threshold depending on investor behavior this time.
In case of a pullback in price, the $4.65 support is currently valid.