- AXS price nosedives as selling pressure reaches new highs.
- Key support levels tested, with bulls struggling to defend.
- Market sentiment remains shaky, leaving AXS in a critical position.
Axie Infinity’s native token, AXS, has had a rough few days, with the price slipping into dangerous territory. The selloff has intensified, and many traders are questioning whether the token has reached its bottom or if there’s more downside to come.
After reaching a peak near $10.35, AXS has been caught in a sharp downward trend, shedding a significant portion of its value. The move seen in TradingView has sparked concern among investors, as previous support levels failed to hold, leading to a wave of panic selling. If the broader crypto market continues to struggle, AXS could be in for an even tougher time.
AXS Still Struggling to Reach Its Prime in 2021
Technical analysis reveals a troubling pattern. AXS has broken below its $5.50 support level, which had held firm in recent weeks. This breach has opened the doors for further downside, and with volume increasing during the drop, it suggests sellers are firmly in control.
The next major level to watch is $4.00, a psychological threshold that could determine if AXS finds stability or if bears push it even lower. If buyers don’t step in soon, there’s a real risk of another significant drop, possibly toward $3.50, an area that hasn’t been tested in a long time.
Will AXS Catch a Break or Keep Sliding?
The next few days will be crucial for AXS. If it manages to reclaim $5.00, confidence could start returning, leading to a short-term bounce. However, if the bearish momentum persists, AXS could remain under pressure for a while longer.
Market sentiment remains uncertain, with many traders choosing to wait on the sidelines rather than jump in during a falling market. While Axie Infinity remains a strong project in the GameFi space, its token is struggling to hold ground amid broader crypto market weakness.
For now, the Web3 game is still far from what used to be the it-game of NFTs in 2021.
