Despite facing severe downside pressure in recent weeks, Axie Infinity (AXS) is rallying with the bullish continuation expected to hold. There are some estimates that suggest AXS will head towards $170 in the near term. Although this is a tad too optimistic, the indicators appear to back this outlook. Here are some notable highlights first:
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Axie Infinity (AXS) is consolidating between $90 and $100. At the time of writing, the token was trading at $94.46.
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This price consolidation could trigger a bullish rally that will see AXS surge $170, gaining nearly 40% in the process.
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Despite this, there are still several downside risks that investors should factor into the $170 price calculus.
Data Source: Tradingview.com
Axie Infinity (AXS) – Price action and prediction
AXS has been one of the hottest blockchain gaming tokens in the past few months. It has had its wild ride, too as far as price action is concerned. After hitting yearly highs of $160 in 2021, we have seen an ensuing correction phase.
However, even with this significant bear pressure, AXS has still traded between $90 and $100 over the past weeks. There is price consolidation, something that could suggest that a bullish breakout is not far away.
In fact, if the coin can surge past the overhead resistance of $105, then we could be seeing a prolonged uptrend that will easily smash past $170.
Why you should buy Axie Infinity (AXS)
Overall, Axie Infinity (AXS) is one of the most promising coins in blockchain gaming. This sub-sector is heating up and is expected to drive a lot of growth and innovations in blockchain tech.
Based on these fundamentals alone, AXS is a good buy. But one key risk to note is that increased competition from other blockchain games could see daily active users on the platform decline. This is likely to put significant pressure on the price.