AXS explodes to record highs following Axie Infinity’s record NFT sales

“Flying High” by Neil. Moralee is licensed under CC BY-NC-ND 2.0

AXS/USDT exchange rate posts 44% gains in the last 24 hours
RSI readings screaming overbought signals
Buying pressure raging strong on Axie Infinity’s record NFT sales and other platform developments

JAIPUR (Coinchapter.com) – AXS, the native asset of the play-to-earn platform Axie Infinity, exploded by 44% in the last 24 hours, with buyers catalyzing a vertical liftoff its benchmark instrument AXS/USDT. Consequentially, the spot pair shot up from the lows near $43 to $77.3.

All AXS investors/holders have registered profits owing to the latest move.

All AXS holders are in profit, Source: IntoTheBlock

“… $AXS has increased by a whopping 45.7% over the past 7-days. 100% of the addresses currently holding #AXS are in a state of profit.
said crypto market analytics firm IntoTheBlock

The period before the ongoing rally was a phase of lull and sideways price action. Bulls took a breather after securing the previous all-time high at $53.7 on July 27. Tuesday’s rebound turned tables as aggressive buyers bought Axie Infinity’s recent progress pointers and milestones.

Record Users And NFT Sales Volumes

First off, the play-to-earn NFT gaming platform surpassed the 1 million daily active players count on Friday.

Axie Infinity topped 1 Million users on Friday. Source: Twitter/Axie Infinity.

However, according to the game’s development team, all users don’t own AXS. Holders continue to remain below 1 million. But that is a non-issue as the game posted record NFT trading volumes north of $1 billion, leaving behind rival projects such as CryptoPunks and NBA Top Shot.

“What a day. Axie Infinity is the first NFT project to hit $1Bn in all-time NFT trading volume. History in the making.”
COO, and co-founder Aleksander said on Saturday

According to decentralized applications and NFT activity tracking website, DappRadar, 330k traders engaging in a little above 2.4 million transactions led to Axie Infinity achieving the said milestone.

But That’s Not All…

In an economy-balancing move, the development team reduced the breeding fee (concerning AXS) to 2 AXS. Breeding fee is an amount which the game charges players to build and maintain their Axies, the game’s characters, for future fights.

Breeding fee for Axies reduced to 2 AXS, Source: Twitter/Axie Infinity.

Community members and supporters of the game welcomed the move.

“The Axie Infinity team is consistently doing the right things. Lower breeding fees = More Scholarships”
posted YouTube and Twitch-based offcial Axie infinity trainer, Bryce

Meanwhile, according to co-founder Jihoz, the game’s play-to-earn allocation stands at a staggering $3.85 billion.

“Few understand that the AXS play-to-earn allocation is now $3,850,000,000. We have not started giving this out because the game is in Alpha.”
Jihoz announced on Twitter

AXS Technical Setup

While the above developments fuelled AXS’s meteoric rise to a new all-time high, risks of a selloff loom large. That is because Axie Infinity’s governance asset has breached past the usual relative strength index (RSI) range to jump into the extremely overbought zone.

With RSI readings trending north of 85, a price drop only seems imminent. The AXS/USDT pair was initially trading within a symmetrical triangle setup, which led to the latest breakout rally. However, bulls pushed AXS prices way past the triangle’s height, which works out to be $19. As a result, the parabolic run is now unsustainable.

AXS/USDT in the overbought zone. Source: AXSUSDT on TradingView.com

A drop from current spot rates would put AXS/USDT in the $60.5-$64.5 range. In case the selloff gathers steam, AXS could even drop down to $56.5. Buyers are expected to hold the token above the 50-day moving average (MA) for now.