Axie Infinity (AXS) holders had concerns that the big pullback in early September would approach zero. However, the popular altcoin fiercely maintained the $4 support level. Investors are wondering whether the recent 12 percent price increase towards $4.50 will continue. Crypto analyst Ibrahim Ajibade tries to satisfy this curiosity with an in-depth on-chain analysis.
AXS whales took advantage of the latest price jump!
cryptokoin.comAs you follow from , Axie Infinity (AXS) gained 12% last week. However, vital on-chain indicators show that the leading altcoin project is unlikely to regain its place in the top 50 crypto rankings anytime soon. On-chain analysis reveals that crypto whales and spot market transactions are not convinced that AXS will enter a prolonged price rally.
AXS price rose from $4.08 to $4.50, a 12% jump in the last week. However, on-chain data shows that AXS whales are taking advantage of the rally to sell their holdings. According to Santiment data, crypto whales holding between 100,000 and 10 million AXS had a cumulative balance of 83.28 million when the AXS price reached a 2023 bottom of $4.08 on September 11. As the AXS price increased, whales sold 760,000 AXS, bringing their balance to 82.52 million as of September 20.
When large institutional investors start selling a token during a rally, trust diminishes across the ecosystem. Therefore, it is possible that the altcoin price will pull back again in the coming days if the whales do not get on board.
Bear traders took over the altcoin market
According to exchange order books, many strategic traders have set up a fairly high sell wall that could put AXS in danger of another price correction. As you can see below, crypto traders have placed active orders to sell 1.9 million AXS around current prices. Meanwhile, buyers placed purchase orders for only 1.8 million AXS.
The Exchange On-Chain Market Depth chart shows the volume of active orders placed by AXS traders on well-known crypto exchanges. The chart above reveals that after the double-digit price jump, the current market supply for the altcoin still exceeds demand by 100.00 tokens. This means AXS will struggle to find enough demand to further its recovery. So it’s a vital sign for Axie Infinity.
AXS price prediction: Altcoin price is on the way down!
The bulls are making a concerted effort to defend the $4 support. However, on-chain indicators suggest another bearish trend towards $3 in the coming days. This is supported by the In/Out Around Price data, which summarizes the purchase price distribution of existing AXS investors. The data highlights that 112 investors purchased 95,260 AXS tokens at a minimum price of $4. If it holds this support level, it is possible that AXS could see another slight price rise. However, if whale investors continue their bearish trend, AXS price is likely to move closer to $3.
Still, if the uncomfortable sentiment surrounding Axie Infinity subsides, the bulls could potentially trigger a major rescue mission towards $7. However, 359 addresses have purchased 1.16 million AXS at a minimum price of $4.70. If they choose to close their positions like the whales did last week, it is possible that the altcoin price will decline again. But if this resistance level gives way, AXS price is likely to reclaim $5. In this case, AXS may start to approach $7.
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