Heed this advice before you go long on Axie Infinity [AXS]
Axie Infinity’s price looks ready to move higher, but there are a few restraints that want to say otherwise. Although the overall outlook for the crypto-market is bullish, AXS has a very slim chance of heading too high in the short-term. And, investors should be wary of it.
Axie Infinity’s price might head higher in the short term due to the bullishness of Bitcoin. While this uptrend might seem bullish, it may just be temporary. Especially since two on-chain metrics indicated that a bearish fate is likely for AXS.
From a technical standpoint, AXS’s price needs to shatter the $54.66 and 65.05 hurdles to move higher. Clearing these blockades will not indicate the start of a bull rally as this move would not break any market structures. Beyond this barrier, it needs to produce a higher high above 7 February’s swing high of $71.9 on a daily chart to even hint at the start of an uptrend.
Simply put, the technical analysis revealed that Axie Infinity’s bulls have their work cut out for them.
Source: AXS/USDT on TradingView
On-chain volume, which is a significant indicator of the health of an upswing or downswing, also revealed sub-par performance at 499.74 million, at press time. This value has declined from 1.41 billion on 6 February, denoting a massive dearth of interest among investors.
Moreover, the current level of on-chain volume is well below the 200-day moving average. This lends weight to the bearish thesis for AXS.
Source: Santiment
While on-chain volume revealed the state of AXS, the supply on exchange metric flashed a proper depiction of the potential sell-side pressure. The number of AXS tokens held on exchanges increased from 2.12 million on 28 January to 3.21 million on 28 February. This represented a total inflow of
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