Once a shining star in the Play-to-Earn space, Axie Infinity (AXS) has experienced a significant downturn, leading to concerns about its future market performance. As uncertainties loom, experts suggest that AXS prices could decline further, particularly if investors resort to panic selling to mitigate their losses.
What Happened to Axie Infinity?
Axie Infinity initially made a spectacular entry into the market, creating historical peaks and making many investors wealthy. However, as the market conditions shifted, the fortunes of many investors reversed, leading to substantial losses for thousands.
Why Are Investors Worried?
Currently, less than 11% of AXS holders are in profit, primarily due to adverse market conditions. The prevailing negative sentiment in the market has led to increased selling pressure as investors aim to minimize their losses swiftly, further impacting the price of AXS.
The Chaikin Money Flow (CMF), which measures the money flow into and out of a cryptocurrency, has reached its lowest levels of the year for AXS. A negative CMF value, like the current -0.15, indicates outflows and a negative market outlook, continuing to apply pressure on AXS prices.
Critical Insights for Investors
– Monitoring CMF values can provide a clear indication of market sentiment.
– Investors should be cautious of the head and shoulders pattern, which signals potential significant corrections.
– Support levels, such as the previously established $4.0 for AXS, can offer strategic entry or exit points.
Conclusion
Future analyses of AXS prices indicate a continuing downward trend, with potential declines to $0.22. If the head and shoulders pattern materializes, a substantial 96% correction is possible, posing significant risks for investors. The initial support level to watch is $4.0, which served as a key resistance in the past.