The play-to-earn game token known as Axie Infinity (AXS) seems to be garnering an increasing amount of interest from both cryptocurrency analysts and investors. Recent investigations by distinguished crypto experts, Ali and Captain Faibik, have pointed out significant patterns and technical markers which imply a likely bullish surge for AXS.
In their analysis, they noticed an inverted head and shoulders pattern on AXS’s weekly chart. This graphical depiction is typically associated with the reversal of a downward shift and the beginning of a bullish phase in trading.
Ali is of the opinion that if AXS successfully breaks the resistance level at $13, it could catalyze a major rally, propelling the price towards $22 or even higher. Captain Faibik echoes this optimism, identifying a distinctly bullish trajectory on the 8-hour timeframe.
Captain Faibik has also pointed out a compelling shift away from an important declining logarithmic trend, hinting that, once the retest phase is over, AXS could potentially witness an upward spike by up to 40% in due course.
Despite the encouraging technical outlook, Axie Infinity has had to overcome obstacles, among them a considerable drop in user engagement. Since its crash in February 2022, AXS, which reached an all-time high of $164 in November 2021, has experienced a 95% plunge.
The asset is currently trading around $7.72, marking a 0.9% increase in the past 24 hours and nearly an 8% rise over the previous week.
This favorable movement in price coincides with a general bullish trend in the global crypto marketplace, powered by the expectation of approval for Altcoin ETFs, particularly Ethereum.
Presently, Axie Infinity stands as the 87th largest cryptocurrency by market cap, holding a valuation of approximately $1.1 billion. The 24-hour trading volume for AXS stands slightly above $41 million.
Regardless of its mid-cap status, Axie Infinity’s network metrics have seen a decline, notably in terms of unique active wallets (UAW) and volume. DappRadar data indicates a 5% decrease in UAW and a 49% downturn in volume over the past 24-hour span, with the current UAW standing at 43,500 and volume just over $1 million.
These market developments have unfolded against the backdrop of a recent security incident revolving around Jeff “Jihoz” Zirlin, co-founder of Sky Mavis, the company that created Axie Infinity.
Zirlin confronted a major security issue in February when two of his crypto wallets were hacked, leading to the theft of over $10 million in various cryptographic assets. The bulk of the stolen property was in the form of RON, the native token of Ronin Chain which is an Ethereum sidechain built specifically for Axie Infinity.
Zirlin confirmed that the breach was isolated to his personal accounts and left the functions of the Ronin chain or Sky Mavis unaffected. He stressed that the purloined private keys were detached from the company’s internal systems, and he reassured the community that the strictest security measures were in place for all chain-related activities.
Persisting through the setback, Zirlin remains positive about the future and continues to be devoted to bringing economic liberation to users via Axie Infinity.
