The week did not start in a positive state for Axie Infinity, coupled with the Ronin hacking incident of last week that saw the popular play-to-earn gaming platform lose $625 million in what was arguably the biggest heist in the history of the blockchain industry.
The AXS/USD pair dropped to $46.99 on April 11, its lowest price slump since March 16, which kickstarted the negative buying sentiments exhibited by traders and investors following the hacking incident.
According to an independent market analyst, TJ, there is no clear sign of interest from buyers even as the price of the AXS is moving into zones with a history of attracting buyers. AXS has broken through the demand zone barrier, which is a possible inflection point, but this move would send the price further below its support level, near the $45,000 mark in the coming days.
Can the AXS price Rebound?
There appears to be a bearish prospect, notwithstanding the firm assurance that Sky Mavis has given about reimbursing all users whose funds went missing during the $625 million hacking heists.
Sky Mavis also announced a $150 million fundraise led by Binance as a sign to show the affected users that it is serious about redeeming its pledge to them.
Moreover, the Axie Infinity token has been painted a red zone for the coming days, which indicates the negative sentiment expressed by both investors and traders.
In analyzing the performance chart of the AXS, the zone around the $45 mark is where the previous accumulation phase for traders was set. Additionally, since its last retest in March, there has been an almost 70% rebound in value for AXS, which translates to a $75 value increase.
For emphasis, this was a similar retracement move that also took place in January and February, when the price was down to around $45.
Meanwhile, once the critical support zone is tested, the oversold sign will suggest another higher price uptrend for Axie Infinity in the coming days of the month.
The Falling Wedge is Needed
According to the market metrics for the Axie infinity, the AXS is already oversold, and for the AXS to pull itself out of the falling wedge line despite the bullish reversal trend points to rather distressing price performance. Moreover, any possible upward move is not attainable in the current situation, which may prompt further negative sentiment from traders.
The support level, which brings together the oversold value and the accumulation zone, would potentially push the AXS to move into the wedge range again, followed by an immediate breakout.
However, breaking below the critical support area near $45 could spark another potential bullish phenomenon for the token. This is not surprising because a break in the crucial support level serves as the direction for a price uptrend.
Ultimately, the one indicator of a possible price rebound is perhaps not seen in the price pattern exhibited before the recent buyer’s sentiments.
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