In 2021, the Play-2-Earn project Axie Infinity (AXS) gained significant attention but later faced a notable decline, sparking concerns among investors. With uncertainties looming in the market, there is speculation that AXS prices may continue to decrease, especially if panic sales occur as investors rush to cut their losses.
AXS swiftly entered the market, reaching historic highs and bringing wealth to many investors. However, as prices fell, losses mounted for numerous others. Less than 11% of AXS holders managed to remain profitable during this turbulent period, largely due to the challenging market conditions.
The current negative market sentiment is believed to prompt further sell-offs as investors seek to mitigate their losses, adding downward pressure on the price of AXS. Moreover, the Chaikin Money Flow (CMF) has dropped to its lowest levels this year, signifying a decrease in money flowing into the AXS market.
Analyses suggest a potential downward trajectory for AXS prices, with projections indicating a possible drop to $0.22. At the time of writing, AXS was trading at $6.01, with expectations of further declines in the near future. If a head and shoulders pattern emerges as indicated in the graph, a substantial 96% correction for AXS could be on the horizon, resulting in significant losses for investors.
Despite the gloomy outlook, it is worth noting that the initial support level for a downward trend in the Altcoin is anticipated to be at $4.0. This price point has previously served as a strong support level for an extended period.
Investors are advised to conduct thorough research and exercise caution when dealing with cryptocurrencies, given their high volatility and associated risks. The information provided in this article is not intended as investment advice. Stay updated on the latest news through our channels on Telegram, Facebook, Twitter, and Coinmarketcap.