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AXS grew by 120% in just 4 days – indicators point to overheating

2 min read

 

AXS, the original NFT Axie Infinity token, grew up in just 4 days by an incredible 120%. However, the market is slowly overheating, as indicated by many RSI indicators. So is the final growth ahead of the correction leg?

AXS / USD 1D.  Source: TradingView
AXS / USD 1D. Source: TradingView

The RSI closed above 70 three times since 1 July 2021. Subsequently, the price each time went into a slight correction to test the EMA21. As a result, the Axie Infinity token could cross a similar bear trajectory in the coming days / weeks. His next negative target is around $ 87.

After corrections led by RSI, the 21-day EMA served traders as purchase indicator. In detail, traders decided to buy a drop in the expectation that the AXS price would be retested and closed above its previous high levels.

Axie Infinity in the top 5

On Monday, the number of active Axie Infinity users was 1.85 million, an increase of more than 4,500% since April. Total cumulative revenue climbed to $ 815 million over the same period. Thanks to that, Sky Marvis, the company behind Axie Infinity, has become the fifth most valuable video game company in the world by market capitalization.

Top gaming companies by market capitalization.  Source: Messari

 

Top gaming companies by market capitalization. Source: Messari

Staking AXS

The latest volume of purchases in the markets Axie Infinity also emerged with a new feature that allows AXS holders to stack their tokens and earn revenue. Since its launch on Thursday, the feature has attracted more than 12.44 million AXS tokens ($ 1.88 billion at current rates).

AXS Staking dashboard

 

AXS Staking dashboard. Source: Axie Infinity

Staking effectively pulls the active supply of tokens out of circulation, which tends to push prices higher due to growing demand for assets.

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