Achieving a colossal 20% gain, Axie Infinity (AXS), has truly lit the torch in the distorted GameFi markets, the result of a brewing legal clash in the heart of Gala Games. Despite these waves, Axie Infinity remains resilient, boasting exceptional performance in the GameFi circuit.
In fact, over the past day, the unique active wallet addresses on AXS have skyrocketed by 77%, attributed potentially to a rapid ecosystem growth. With active deposits reaching a 3-month zenith, AXS has fanned the flames of their bull run spectacularly.
This isn’t all – with Gala taking a backseat, Axie Infinity reigns supreme in the GameFi sphere, commanding an overwhelming 80% of market share in the Asian NFT world. A significant mark, it shares this dominion with Decentraland, another metaverse project that holds a 20% chunk of the market. As crypto acceptance in Asia ratchets up, this could indeed drive a major growth in active wallet addresses.
Even amid this robust growth, AXS currently trades at a market price of $4.76, down by 0.42% in 24 hours. Following the 20% surge, AXS reclaimed the upper hand over the descendant 20DMA, a towering hurdle that has been in place for more than 50 days.
A closer dissection of AXS’s price activity reveals the cryptocurrency trying to plant its roots above the 20DMA and below a local resistance point of $5.70. Successfully surpassing this threshold would put AXS in prime position for a shot at the 200DMA, currently around $6.73.
There are certain red flags though. The RSI is scorching hot, soaring to hit 51.17 as it treads into overbought territory. This could invite a pause, or consolidation phase. Other markers such as the MACD, however, remain bullish, having widened the divergence to 0.06 following a momentous swing up.
What does this mean for Axie Infinity? While risk remains of a tumble back to $4.10 if the 20DMA support level is rejected, a leap towards $5.70 is also possible. The risk: reward ratio presently sits at 1.46, signaling it may still be a good time to invest.
In addition to existing GameFi projects, there are fresh contenders making their presence felt in the ecosystem, one of those being Launchpad XYZ. Offering a plethora of tools and features in a user-friendly design, it seeks to widen entry to the world of Web 3.0. Along with the discounts and privileges it offers to $LPX token holders, this comprehensive platform has a vision that aims to reshape the cryptographic landscape.
Despite crypto’s infamous volatility and high risks, these dynamic movements bring forth a whirlwind of opportunities for seasoned and newbie investors alike. As we edge towards an increasingly digital world, these developments signal a promising prospect for the future of cryptocurrency.
Source: Cryptonews
