- Axie Infinity price made a strong bullish comeback in the past few days.
- It rallied as the community met to address the network's challenges.
Axie Infinity price has made a strong comeback in the past few days even as its ecosystem growth remains significantly challenging. AXS token soared to a high of $9.2, which was the highest level since November 13. It has risen by more than 50% from its lowest level this year.
Axie Infinity growth sinks
Axie Infinity is one of the best-known gaming platforms in the blockchain industry. It is a platform where users play games with the goal of earning rewards in the form of Smooth Love Potion (SLP). SLP, its cryptocurrency, had a market cap of more than $115 million, making it the 168th biggest cryptocurrency in the world.
Axie Infinity, after going through exponential growth in 2021, has going through a major meltdown this year. This decline happened as the Smooth Love Potion and Axie Infinity prices have crashed by over 80% this year.
Data compiled by DappRadar shows that the number of unique active wallets (UAW) interacting in the network has dropped by 34% in the past 30 days. The number of these active wallets has dropped to about 114.56k.
At the same time, the number of transactions in the ecosystem has dropped by 52% in the past 30 days to about 1.15 million. Further, the total amount of incoming value to dapp’s smart contracts has dropped by 79% to $37.79 million. As shown below, historical activity in the network has plunged to an all-time low.
AXS price has risen as investors focus on the ongoing Axie Contributor Initiative Kickoff. This is an important event that have over 600 dedicated members working to save the network.
The biggest challenge for Axie Infinity is that interest in gaming has been in a downward trend after peaking during the pandemic. Indeed, most gaming stocks have been in a downward trend in the past few months.
Axie Infinity price forecast
The four-hour chart shows that the AXS price has been in a strong bullish trend in the past few weeks. As it rose, it managed to move above the important resistance level at $7.38, which was the highest level on November 15.
It has also rallied above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved to the overbought level. In my view, I suspect that this rally is part of a dead cat bounce, meaning that it will resume the bearish trend soon.
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