Axie Infinity traders should know this reason behind 40.66% rally of AXS
Axie Infinity, over the last 24 hours, was one of the best-performing assets not just in GameFi or DeFi but amongst every major cryptocurrency.
With the overall growth observed over the week, AXS was successful in invalidating some of the bigger losses this month.
Axie Infinity takes back control
Apart from June noting one of the worst crashes in crypto’s history, Axie Infinity, in particular, observed the outflow of almost $36 million worth of AXS tokens from the investors’ wallets as the altcoin hit its lowest point in almost a year.
The crash to $11 triggered not just short-term traders to sell and move on but also the long-term holders who have been holding on to their assets since June 2021. As per the obtained on-chain data, within 24 hours, over 17 billion days were destroyed on 18 June.
Following this, for the next two days, about $91 million worth of supply went into losses as investors tried to move it across wallets.
However, after a week of consistent green candles, AXS managed to recover from those lows and rally by 40.66%; trading at $18.16 at the time of writing. Although Axie Infinity is still far from recovering the losses of June, it is certainly on the path to achieving it.
The Relative Strength Index (RSI), which hit the oversold zone not too long ago, climbed up into the bullish zone after more than two months. In addition to this, with the support of the broader market’s positive cues, AXS is inching closer to reclaiming the 50-day SMA as support.
In the past, this level of support has been the first sign of a sustained rise, which is what Axie Infinity needs right now.
Consequently, a continued incline in prices would also trigger an improvement in the altcoin’s market value which has declined significantly over the last two months.
Although clearer signals are yet to appear, AXS might be making a move for the better with this rally.