Axelar token price has suffered a big reversal this week as the crypto market crash continues. The AXL coin dropped to $0.3600 on Friday morning, down by over 40% from its highest point this month.
Axelar Price Crashes Despite Strong Fundamentals
Axelar is a top blockchain network that enables interoperability between over 50 blockchains like Ethereum, Polygon, Mantle, and Base. It will soon integrate with XRP Ledger, Stellar, and Solana.
Data on its website shows that its network is doing relatively well as transactions jump. It has handled over 141,800 transactions in the last 30 days worth over $163 million, and the number is growing.
More data shows that the total value locked (TVL) in the Axelar network has jumped to a record high of over $880 million, an impressive surge since it had $175 million in March.
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Axelar’s network growth will likely continue in the coming months. For example, it has a partnership with Deutsche Bank to build compliant rails for tokenized finance. Deutsche Bank is the biggest German bank with over $1.5 trillion in assets.
Axelar also announced a partnership with Ubyx, a company building a global clearing service for stablecoins. The partnership will see Ubyx use Axelar’s interoperability solutions to integrate it stablecoin solutions with any chain.
Meanwhile, the fees generated on the Axelar network have soared in the past few weeks. Data compiled by Artemis shows that the monthly fees jumped to $1.5 million in April from $302,000 a month earlier.
Axelar price has crashed because of the ongoing crypto market crash and profit-taking after it surged by over 110% within a few days. It is common for an asset that just surged to pull back as investors book profits.
AXL Price Technical Analysis
The daily chart shows that the AXL token price formed a double-bottom pattern at $0.2987 and a neckline at $0.4563. A double bottom is a bullish reversal sign, which explains why it rebounded to $0.6300 on June 10.
Axelar then suffered a big reversal as Bitcoin and most altcoins crashed, and as mean reversion happened. It has now dropped below the 23.6% Fibonacci Retracement level.
AXL token is consolidating at the 50-day and 100-day Exponential Moving Averages (EMA). Therefore, Axelar price will likely bounce back in the coming days as investors buy the dip. If this happens, the next price target to watch will be at $0.4563, its highest swing on March 10.
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