Axie Infinity price could surge 50% amid the network renaissance

Axie Infinity (AXS) and Smooth Love Potion (SLP) tokens have crawled back in the past few days as the ecosystem started to bounce back. The SLP coin was trading at $0.0035 on Friday, up by 65% from its lowest point this year. 

Similarly, the Axie Infinity coin was trading at $5.87, up by 50% from the year-to-date low. The two remain significantly lower than their year-to-date high.

Is Axie Infinity making a comeback?

There are increasing signs that the Axie Infinity ecosystem is bouncing back as gamers compete for Smooth Love Potion and AXS tokens.

Data on SimilarWeb shows that the number of visitors to the website jumped by 11% to 1.8 million in October this year. Most of these visits are coming from the Philippines, Colombia, United States, and Brazil. Also, most of the website traffic is direct, meaning that users are directly going to the site.

More data by DappRadar shows that the Unique Active Wallet (UAW) in the ecosystem has continued growing in the past few months. Total UAW rose by 0.95% in the last 24 hours to 103.23k. 

Axie Infinity’s transactions jumped by 12% to over 152k, while the volume and balance jumped to $2 million and $1.02 billion. 

The same trend has happened in the last 30 days. Total UAW jumped by 7.9% to over 161.28k, while the number of transactions and volume rose to 3.58 million and $60.4 million, respectively. NFT sales on the platform have also jumped sharply in the past few months.

These numbers are lower than Axie’s peak. However, they are a sign that the gaming network is doing well at a time when the industry is struggling.

A likely reason for more activity is that gamers want to accumulate as much AXS and SLP tokens in preparation of the next bull run. 

At the same the developers have worked to make the network more active. On Thursday, the developers launched the Wings of Nightmare, which gives users access to 2,700 AXS tokens, 6 ETH, and a Mystic Axie. 

To be involved, users need to ensure that their axie has 1 of the 24 base parts for the Nightmare evolution, gather the required evolution materials, and click evolve on the Axie app. After that, users select the instant evolution and challenge others. Data shows that there was 103 ETH volume worth over $400k on the app.axie network because of the Wings of Nightmare.

Axie Infinity price analysis

AXS chart by TradingView

The daily chart shows that the AXS token bottomed at $3.87, its lowest point in August to almost $6 today. The coin has jumped above the ascending trendline that connects the lowest swings since August. 

Axie Infinity token price has jumped above the key resistance level at $5.56, its highest point in September and October. It has moved above the 50-day and 100-day Exponential Moving Averages (EMA). 

The coin is also nearing the 23.6% Fibonacci Retracement level at $6.07. Meanwhile, the coin has moved above the weak, stop & reverse level at $5.8593. It has also formed a break and retest pattern, a popular continuation sign. 

Therefore, there is a likelihood that the AXS token will continue rising as buyers target the extreme overshoot level at $7.03, which is about 20% above the current level.

A break above that level signals to more upside, with the next point to watch being the 50% retracement point at $8.76. This price is about 50% above the current level. On the flip side, a drop below the key support at $5 will invalidate the bullish view.