Decision time as Axie Infinity holds support amid weak momentum

Decision time as Axie Infinity holds support amid weak momentum

By Motiur Rahman - min read
  • Axie Infinity has dipped 2.62% in the past day.

  • Google Cloud recently joined the list of Axie Infinity validators.

  • AXS has retested $12.8 support amid a sluggish momentum.

Axie Infinity AXS/USD has dipped 2.62% in the past 24 hours to trade at slightly above $13. The drop comes despite Google cloud recently joining the list of firms validating transactions on the blockchain.

Google’s entry makes the number of validators on Ronin 18. Ronin is Axie’s gaming-based Ethereum sidechain. The platform was breached in March in one of the largest DeFi hacks of all time. About 10% of the more than $500 million worth of crypto losses has since been recovered.  

Part of the security intervention by Sky Mavis has focused largely on decentralization. The developer aims to expand validators to 21. The effort is yet to have a significant impact on the price of AXS token, which tanked from $75 to $13 after the exploit.

Axie Infinity is a battling game powered by collectible NFT assets. To date, the blockchain game has recorded more than $4 billion in NFT asset sales. Much of the success was registered last year before play-to-earn platforms lost momentum. Axie Infinity is now expanding to free-to-play models, and it remains to be seen how profitable the move will be. On the technical side, AXS is facing a correction. 

AXS retests $12.8 support in a market correction

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Source: TradingView

According to the daily chart above, AXS has retraced from a high of $15.3 to the $12.8 support level. Despite the MACD indicator showing bullish signals, momentum to the upside is weak. RSI is at 40, meaning the bears are still controlling the market. However, a price above the $15 resistance invalidates the bearish sentiment, and AXS could set on recovery.

Concluding thoughts

AXS has retraced to a make-or-break support level. A price below the support could open more weakness, and the token could trade even lower. Concerns around the security of the Ronin network remain a challenge for Axie Infinity in the long run.