Axie Infinity price prediction: what next for the AXS token?
- The Axie Infinity price has been in a bearish trend lately.
- The coin has declined by over 55% from its highest level.
- We explain what to expect in the near term.
The Axie Infinity (AXS/USD) price has had a difficult period in the past few months. After soaring to an all-time high of $172 in November, the coin has crashed by about 55% to the current level of about $76. As a result, its total market capitalization has declined to $5.4 billion and its ranking has fallen to 35.
Play-to-earn is a relatively popular concept today. The idea is a bit simple. Instead of playing centralized games where you spend money, you can play games for free and earn rewards when you win.
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Axie Infinity was one of the first blockchain projects to offer these services. As a result, the number of users grew to millions per month.
As this happened, Axie developers introduced new products that are at the intersection of gaming and non-fungible tokens (NFTs). As such, gamers in this ecosystem can spend their AXS tokens buying collectibles offered by other gamers.
In the past few months, activity in that ecosystem has jumped sharply as people participate in games and in the NFT market.
The next phase for Axie Infinity is on the metaverse. Developers are building products that will enable people to buy and develop their plots. This is a similar product to what is offered by Decentraland and The Sandbox.
Analysts believe that this transition will lead to more activity, which will lead to higher Axie Infinity prices.
However, in the past few months, the AXS price has been under intense pressure. The same trend happened in other play-to-earn tokens like GALA, Sandbox, Decentraland, and even My Neighbor Alice. Analysts are worried about whether these assets will continue doing well in a period of high interest rates.
Axie Infinity price prediction
The daily chart shows that the Axie Infinity price has been in a bearish trend. The coin has managed to move below the 25-day and 50-day moving averages (MA). The Relative Strength Index (RSI) has been in a bearish trend.
Therefore, there is a likelihood that the AXS token will likely keep falling as bears target the next key support at $60. A move above the key resistance at $90 will invalidate this view.
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