Axie Infinity (AXS) soars 52% ahead of Origin launch

Key Takeaways:

  • Axie Infinity's native token AXS prices surged 52% in the current week.
  • The uptrend takes cues from launch of Origin.
Axie Infinity, Axie Infinity (AXS) soars 52% ahead of Origin launch
The native token of Axie Infinity, AXS, surged 52% in the current week. Image from freepik and cryptologos

NEW DELHI (CoinChapter.com) — Axie Infinity’s native token, AXS, has jumped nearly 52% since Mar. 21, going from the low of $49.19 to reach an intraday high of $75 on Mar. 25.

Notably, AXS broke above its four-month-long descending trendline resistance, boosting traders’ confidence. On Thursday, the Axie Infinity token gained 20.5%, beginning the day at $58.4 to reach a high of $72 before paring gains to close the day at $70, its highest single-day gain since Oct 2021.

In addition, AXS’s 20-day exponential moving average (red wave) is moving up towards its 50-day EMA and would soon cross above it to form a bullish technical pattern called Golden Cross. Traders often consider the pattern a prelude to an upcoming bull run.

AXSUSD daily charts with descending trendline resistance and MACD. Source: Tradingview.com
AXSUSD daily charts with descending trendline resistance and MACD. Source: Tradingview.com

If the golden cross adds some winds to AXS’s sails, the Axie Infinity token would likely flip immediate resistance near $76 before targeting resistance near $83. Moreover, a sustained bull run could see AXS target resistance near $93 before corrections pull back prices.

Also Read: Smooth Love Potion (SLP) jumps 67% after Axie Infinity revamps reward structure.

Trend-based momentum oscillator MACD continues to be bullish for AXS. Bars on the MACD histogram are expanding, indicating the MACD line (difference of 12-day and 26-day EMA) is moving away from the MACD signal line (9-day EMA of MACD).

Expanding bars show strengthening bullish momentum for the Axie Infinity token.

RSI Doesn’t Want To Play

However, the massive bull run also resulted in AXS’s relative strength index becoming overbought, clocking 75.04 on the daily charts. An RSI above 70 often indicates a trend reversal in the cards. Traders consider an overbought RSI a sell indicator, resulting in prices paring.

AXSUSD daily chart with RSI. Source: Tradingview.com
AXSUSD daily chart with RSI. Source: Tradingview.com

An overbought RSI-induced sell-off could see AXS prices falling to support near $68. If immediate support fails, the Axie Infinity token could move to test support near $63. Finally, a sustained sell-off could bring support near $58.7 into play.

Axie Infinity Origin Propelled Prices

The upcoming launch of Axie Infinity’s Origin update is the game’s most recent significant development, providing bullish cues to AXS. The launch is likely in the coming weeks. Origin would include new game mechanics, art, special effects, and “an expansive onboarding experience,” Axie’s announcement said.

Also Read: Mina Protocol (MINA) rallies 25% after raising $92M and scoring a Coinbase listing.

The game would also include new in-game elements such as runes and charms that would act as powerups. In addition, new game mechanics would include sequential turns, with energy and cards reset after every turn.

Earlier, the game allowed players to accumulate unused energy and cards. Axie Infinity will also introduce simplified stats for the Axies, the in-game NFTs.

Meanwhile, the Axie Infinity user base has increased steadily over the past few months, currently at an ATH of 207,544 users.

The number of Axie Infinity active users and AXS stakers is rising. Source: Dune Analytics
The number of Axie Infinity active users and AXS stakers is rising. Source: Dune Analytics

Furthermore, AXS staking has attracted even non-gamers to the ecosystem by offering 73% staking rewards through its platform. 24,922,472 AXS tokens, worth roughly $1.83 billion, are staked on the Axie Infinity platform.

At the time of writing, AXS was trading at $73.87, up 4.9% on the day.

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Axie Infinity, Axie Infinity (AXS) soars 52% ahead of Origin launch

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