The Axie Infinity price held steady during the weekend as investors reflected on the new Chinese ban of cryptocurrencies. The AXS token is trading at $65.43, which is slightly below its all-time high of $94.25.
Future of gaming?
Axie Infinity is one of the biggest cryptocurrency projects in the world. The total market capitalization of all AXS in circulation is worth more than $4 billion, making it the 38th biggest cryptocurrency in the world.
For starters, Axie Infinity is a blockchain project that is at the intersection of gaming and non-fungible-tokens (NFT).
The main product is a game that was inspired by Pokemon and is built on Ethereum’s blockchain. In the game, players can battle, collect, raise, and build kingdoms for their pets. They are then rewarded using AXS, the native token for the ecosystem. Statistics put it as the number 1 Ethereum games by the number of daily and monthly active users.
In an interview with DeCrypt, Jeff Zirlin touted the platform as the future of gaming and NFTs. He said that Axie will be the first game owned by the community. Also, he said that the developers were working on a bunch of upgrades to make the ecosystem more efficient. He said:
“We’re looking at upgrading our battle system in the next six months. We also have a DEX on the way that I think our community is super excited about.”
Still, while Axie Infinity has been successful, it faces significant challenges ahead. The most important one is the rising competition from well-funded startups like Sorare, Decentraland, and The Sandbox.
Axie Infinity price prediction
The daily chart shows that the AXS price has been moving sideways in the past few days. As a result, the Axie Infity price is trading along the 25-day and 50-day moving averages. At the same time, its average price has declined recently while the MACD has formed a bearish divergence pattern.
Therefore, while a rebound will likely happen in the near term, there is a likelihood that the price will break out lower in the long term. That’s because a bearish divergence pattern is usually a bearish signal. If this happens, the next key level to watch will be the support at $47.
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