Axie Infinity broke above its year-long downtrend after gaining more than 100% during the past week. A crypto netizen predicts that the token could make a retracement only after it stays above $40.
Axie Infinity (AXS), a trading and battling game where the players get to breed, raise, and collect Axies, token-based creatures, made significant gains during the week. The token broke above its year-long downtrend and rose, severing the shackles at the $1 resistance level.
AXS steals second spot on GameFi tokens
Gaining more than 130% during the past week, the token captured the second spot on CoinGecko’s GameFi tokens by market capitalization.
AXS currently holds a market cap of $436.5 million, not too far away from the vertical leader, The Sandbox, which has a market cap of $442.6 million. Although Sandbox leads the pack among GameFi tokens, AXS trumps SAND by value gained in a week.
Adding a whopping 133% in the week, AXS is head and shoulders above SAND in terms of value addition.
AXS’s price charts are looking very promising, as the token has broken above its 11-month-long downtrend. Looking back at the AXS price action, the token has always been trading most of the time below the 200-day and 50-day moving averages (MA).
Although there were times when AXS managed to break above the 50-day MA, which is considered a short-term indicator, it was unable to rise above the 200-day MA, the long-term indicator, for once.
SLP reward slash help AXS prices
However, AXS established this uptrend after the project took measures to cut down on the Smooth Love Potion (SLP) rewards. As the project reduced the SLP token rewards, it was able to control bot farming and excess inflation, and the AXS prices started to appreciate.
With the token now trading above both the MAs at $2.5, the market looks very bullish. According to crypto netizen’s analysis on the Fibonacci level, AXS will retrace after it hits only $40.
Although the netizen predicts AXS to hit $40, it may take some time for it to reach that level, as the market is currently overbought according to the Relative Strength Index. Hence, there might be a small retracement before AXS starts its trajectory towards the $40 level.
