Axie Infinity (AXS) continues to be developing a huge bearish reversal pattern since This summer this past year, that could send its prices lower by another 95% in 2022.
AXS risks one big breakdown
Dubbed the “inverted cup and take care of,” the pattern is recognized by its large crescent shape adopted with a modest upward retracement. It typically resolves following the cost breaks from the rising funnel, adopted by another break underneath the cup-and-handle’s neckline support.
Meanwhile, usually of technical analysis, an inverted cup and take care of breakout leads the cost to the stage in more detail comparable to the utmost distance between your structure’s top and support.
AXS’s cost rally throughout the other half of 2021, adopted by its complete wipeout in 2022, constitutes a crescent shape trend, which appears like an inverted cup. In addition, the current 50% cost rebound in the June 18’s local bottom of $11.82 forms an inverted handle, as proven below.
Thus, AXS’s technicals appear skewed towards the downside, trained with breaks underneath the inverted handle range having a breakdown target of $1, lower about 95% from today’s cost.
Bad press hurt Axie Infinity
The ultimate bearish outlook mainly seems within the wake of the depressive trend elsewhere within the crypto market. Nevertheless, AXS also suffers because of Axie Infinity’s crumbling vision of sustaining a gaming platform that pays its user to experience.
Furthermore, bad press together with a $600 million hack captured has additionally dampened the interest in AXS, which works as a governance token and legal tender inside the Axie Infinity ecosystem.
That’s visible in Axie’s monthly revenue performance, that has dropped over 98% from the August 2021 peak of $364.4 million, based on data tracked by Token Terminal.
But Axie Infinity may not disappear altogether, argues Cointelegraph’s Yanto Chandra in the opinion editorial, noting the project would “reinvent itself and chart a brand new future within the fast-altering GameFi landscape.”
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