- Axie Infinity price has been in a strong bearish trend.
- The token has moved from an all-time high of $166 to the current $13.
- There are concerns about the future of Axie Infinity.
The Axie Infinity price crashed to an all-time low as concerns about the platform’s future continued. The AXS token dropped to a low of $13.50, which is about 92% below its all-time high. Its market cap has crashed to about $885 million from a peak of over $4 billion. Similarly, the Smooth Love Potion (SLP) has seen its market cap fall to just $20 million.
Why is AXS crashing?
Axie Infinity is a well-known blockchain project that is at the intersection of gaming, non-fungible tokens (NFT), and the metaverse.
Learn more about what an NFT is.
The network, which was created by Sky Mavis, was created as a play-to-earn (P2E) platform. After experiencing difficulties, the developers decided to move it to play-and-earn. Players in the ecosystem earn SLP for winning.
The Axie Infinity price has crashed as investors focus on the falling interest in its ecosystem. At its peak, Axie had over 2.5 million daily active users. Today, the number has dropped to about 658k.
At the same time, it seems like the developers are transitioning the platform from cryptocurrencies to fiat currencies. They launched Axie: Origin, which uses fiat currencies. The goal is to ensure that the platform is welcome to all people even those who don’t have interest in cryptocurrencies.
The AXS price is crashing after Bloomberg wrote a long feature on the challenges facing the Axie Infinity ecosystem. The writer talked to several people who were big in the industry but those who have largely exited the industry.
Many of them cite the $160 million hack that happened a few months ago and the fact that the ecosystem is no longer vibrant. Worse, the SLP that they used to earn has already become almost worthless.
Meanwhile, the rising fear of a recession following last week’s inflation data has pushed more people from cryptocurrencies and stocks.
Axie Infinity price forecast
The daily chart shows that the AXS price has been in a strong bearish trend in the past few months. A coin that was trading at $166 to the current level of $13.14. The sell-off gained momentum after the coin dropped below the important support at $47.71. It remains below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has been in a strong downward level.
Therefore, the Axie Infinity price will likely continue falling as bears target the key support at $5. The sell-off will be invalidated if it moves above $47.
