beincrypto.com
Axie Infinity (AXS) entered a bearish trend after a 5% negative performance in February.
The steady decline in whale transactions and price volatility suggests that the bears may remain in firm control in the coming weeks.
AXS Whales Are Missing in Action
Axie Infinity is one of the top 10 ranking GameFi projects globally. In February, its native AXS token delivered an unimpressive 5% price decline. And tellingly, the activity of large investors has diminished significantly on the blockchain gaming network over the past 30 days, signaling an extended price slump.
According to the renowned on-chain market intelligence platform, Santiment, the number of whale transactions recorded on the Axie Infinity network has dropped by nearly 80% since the start of February.
Previous AXS price slumps have frequently been accompanied by a comparable fall in the volume of large transactions.
Santiment recorded 66 AXS transactions worth over $100,000 at the close of Jan. 31, and by the recent count on March 14, the figure has dropped to 14.
Also, a closer look at the on-chain data trail of the Axie Infinity network shows that price volatility has become less intense.
AXS price volatility ratio, measured at four-week intervals, reached a 3-month low as trading drew to a close in February.
From 0.20 recorded on Feb 1, AXS price volatility ratio hovered around 0.12 as of March 14. In the past, when volatility diminished, it often coincided with price slumps on the GameFi network.
Furthermore, crypto investors often seek high-volatility assets because they move more quickly and have larger price changes. Hence, the declining volatility on the AXS network may likely trigger short-term traders to sell off their tokens as they seek to avoid a stagnant price action in the coming weeks.
Axie Infinity Price Prediction: Drop Below $6?
IntoTheBlock’s Exchange Market Depth chart provides a>
In contrast, if the trend turns bullish, $9.72 is a key resistance point, as the aggregate order books of exchanges currently show 91,000 sell orders of nearly 1.5 million AXS tokens.
But, if Axie Infinity scales this resistance point, the 113,000 sell orders of 1.3 million AXS tokens at $12 will be the next cluster to beat.