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Axie Infinity Shards (AXS), the cryptocurrency that powers Axie Infinity’s web3, non-fungible token-based gaming ecosystem, is one of the worst-performing cryptocurrencies in the top 100 by market capitalization over the last 24 hours at the start of the week. AXS/USD was last changing hands around 12% lower over this time period in the mid-$10s, according to CoinMarketCap.
The crypto token, which lives as an ERC-20 smart contract on the Ethereum blockchain, has been falling in tandem with a broader pullback in cryptocurrency prices, which fell on Monday in tandem with traditional risk assets like stocks. The dollar and US yields were both a little stronger on Monday, with markets cautious ahead of a barrage of key macro events this week, including policy announcements from the Fed, ECB, BoE, US jobs and US ISM PMI data, as well as earnings from a number of big tech giants.
Technical Selling Weighs on AXS
Technical selling appears to explain the token’s underperformance, with AXS now having fallen back to the south of its 200-Day Moving Average at $11.15. AXS/USD broke to the south of a short-term uptrend that had been supporting the price action going back to the 25th of January. With this uptrend broken, short-term bearish speculators are targeting a test of support in the form of the 5th of December and 15th of January highs in the $10.40 and $10.20 areas, which reside just above AXS’s 21DMA at $10.08.
This area also coincides roughly with January’s upwards trend line. It will thus be interesting to see how much appetite the bulls have to buy the dip if Axie Infinity Shards does pull as low as the $10 area. If this week’s macro events go badly for crypto (i.e. a hawkish surprise from the Fed and other central banks plus bad big tech earnings), then risks could even be tilted towards a possible break to the south of this month-long uptrend. The next bearish target would then be support in the $8.0 area, which would mark a 25% drop from current levels.
AXS Alternatives
Investors looking to benefit from the potential growth of Axie Infinity’s promising web3 gaming ecosystem as the broader crypto gaming space gathers pace should consider investing in AXS. But it is always good to diversify, which is why crypto investors interested in the crypto gaming space should take a look at other options.
InsideBitcoins recently reviewed an up-and-coming project called Meta Masters Guild, which is billed as potentially one of the fasted mobile-based web3 gaming platforms of 2023. The play-to-earn (P2E) game rewards players with cryptocurrency and users can participate with non-fungible tokenized (NFT) characters.
Meta Masters Guild has so far managed to raise an impressive more than $1.5 million in the presale of its MEMAG token, which some analysts are predicting could explode when launched on centralized cryptocurrency exchanges in the coming months.
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