Axie Infinity’s AXS price spikes as unique wallets soar: is it a buy?

• Axie Infinity’s token jumped as the number of unique wallets jumped.

• The UAW rose by more than 77% to 24.3k in the past 24 hours.

• They are still down by over 11% in the past 30 days.

Axie Infinity (AXS) price popped on Thursday and then pulled back. It jumped to a high of $5.13 and retreated to a low of $4.61. In all, the coin has dropped by more than 96% from the highest level on record.

Axie Infinity users falling

Axie Infinity is one of the biggest players in the blockchain gaming industry in the world. The developers created a platform where people can play games and then win rewards through the Smooth Love Potion (SLP) coin.

At its peak, Axie Infinity had hundreds of thousands of users who played for both fun and money. Recently, however, the platform has lost thousands of users as demand for these games wane.

Data by DappRadar shows that the number of Unique Active Wallets (UAW) in Axie Infinity dropped by more than 10% in the past 30 days to 76.6k. The volume of incoming funds in its smart contract dropped by 34% to over $22.36 million. As a result, the balance left in the network stans at over $550 million.

Axie Infinity’s user metrics are much higher than those of other popular platforms like Decentraland and The Sandbox, These platforms have less than 4,000 unique users every month.

It is unclear why Axie Infinity price jumped on Thursday. A likely reason is that the coin jumped in sync with other digital currencies. Bitcoin has risen above $26,700 while Ethereum has moved to $1,635. In all, the total market cap of all cryptocurrencies jumped to over $1.06 trillion.

In most cases, altcoins like Axie Infiny tend to rise when Bitcoin is doing well. Therefore, since there is no major news driving the token, there is a likelihood that it will resume the bearish trend in the near term.

Another likely reason is that the UAW jumped by 77% in the past 24 hours to 24.3k. Transactions in the same period rose by 84% to 49k.

Axie Infinity price forecast

The daily chart shows that the AXS token price has been in a strong bearish trend in the past few months. It has remained below the descending red trendline that connects the highest swings since February. The coin is below the 50-day moving average and has retested the key resistance at $4.62.

Therefore, Axie Infinity price will likely resume the bearish trend as bears target the key support level at $4.