Axie Infinity (AXS), the popular play-to-earn game token, appears to be drawing significant attention from crypto analysts and investors alike. Recent analyses by renowned crypto experts Ali and Captain Faibik have identified key patterns and technical signals indicating a possible bullish breakout for AXS.
The analysts observed an inverted head and shoulders pattern on the weekly chart of AXS, a classic technical indicator often associated with the reversal of a downtrend and the start of a bullish phase.
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Major Rally Predicted For Axie Infinity (AXS)
Ali predicts that if AXS can successfully break through the $13 resistance level, it could trigger a rally, pushing the price toward $22 or higher. Captain Faibik shares this optimism, pointing out a bullish trajectory on the 8-hour timeframe.
#AxieInfinity appears to form an inverse head-and-shoulders pattern on the weekly chart, which anticipates $AXS to rise toward the neckline at $13 before a potential breakout to $22. pic.twitter.com/99kVKwUrwc
— Ali (@ali_charts) May 23, 2024
Faibik noted a decisive breakout from a significant falling logarithmic trend and suggested that, following a retest phase, AXS might experience a surge of up to 40 percent in the near term.
$AXS Major Trendline Breakout & Retest has confirmed on the 8hr timeframe Chart.. ✅
Looks Promising for the +40% Bullish Rally in the near term. 📈#Crypto #AXS #AXSUSDT pic.twitter.com/VrxIndGIDc
— Captain Faibik (@CryptoFaibik) May 23, 2024
Despite the positive technical outlook, Axie Infinity has faced challenges, including a significant drop in user engagement. Following its crash in February 2022, the token AXS has since fallen from its all-time high of $164 in November 2021, plummeting by 95%.
The asset is currently trading at around $7.72, an increase of 0.9% in the past 24 hours and nearly 8% over the past week.
This price movement coincides with a generally bullish trend in the global crypto market, fueled by anticipation of Altcoin ETFs’ approval, particularly for Ethereum.
Axie Infinity is currently ranked as the 87th largest cryptocurrency by market cap, maintaining a valuation of around $1.1 billion. The 24-hour trading volume for AXS stands just above $41 million.
Despite its mid-cap status, Axie Infinity’s network metrics have declined, such as unique active wallets (UAW) and volume. DappRadar data shows a 5% decrease in UAW and a 49% drop in volume over the past 24 hours, with current UAW at 43,500 and volume slightly above $1 million.
Recent Security Breach and Future Outlook
The backdrop of these market dynamics includes a recent security incident involving Jeff “Jihoz” Zirlin, co-founder of Sky Mavis, the company behind Axie Infinity.
In February, two of Zirlin’s crypto wallets were compromised, leading to the theft of over $10 million in various crypto assets, primarily RON, the native token of Ronin Chain. This chain is an Ethereum sidechain designed specifically for Axie Infinity.
Zirlin confirmed that the breach was limited to his accounts and did not impact the Ronin chain or Sky Mavis operations. He emphasized that the stolen private keys were not connected to the company’s internal systems and reassured the community of strict security measures for all chain-related activities.
Despite the setback, Zirlin remains optimistic about the future and is committed to bringing economic freedom to users through Axie Infinity.
Featured image created with DALL·E, Chart from TradingView