Gaming tokens were still maintaining the bullish momentum that started as the previous week came to a close. However, most of them have not sustained this trend in the past 24 hours.
Axie Infinity is leading all the top-capped tokens with double-digit gains of 14%. This rally was within the 113% range of last week.
Only three of them have managed positive returns among the top 10 in terms of capitalization. The Sandbox [SAND] and Decentraland [MANA] recorded 6% and 5%, respectively, while the others were in red.
The rally follows capital rotation into gaming tokens. They have been the strongest sector among all altcoins over the past week. Will AXS bulls sustain the trend?
AXS bears testing bulls’ strength
The chart showed that AXS was in an uptrend after breaking out of the sideways consolidation below $1. The breakout was followed by a surge that was paused around the higher high of $2.
The pause came as bears kicked in. As such, the MACD was red, though the strength was diminishing after bulls countered the pullback.
This signal showed sellers were being taken out gradually after recovery was initiated at $1.6.
Source: TradingView
Meanwhile, the On Balance Volume (OBV) of over $90 million explained what drove the recovery. However, bulls needed to beat bears at the $2 zone, which was the decision area for the next move.
Transactions show mixed signals
The network activity on Etherscan showed that there were over 2,600 transactions on the day. This indicated why AXS had outperformed its peers during the day.
Source: Etherscan
However, this on-chain activity was mixed in sentiment despite the gauge being 84% bullish and 16% bearish. There were addresses that were withdrawing from exchanges, and at the same time, there were those depositing.
For instance, a wallet deposited over $40K AXS to Bybit. Another wallet withdrew $16.9K worth of AXS from Binance.
Furthermore, there was inter-exchange token movement. For instance, Coinbase moved $5K to Binance, while OKX moved $1.3K to the Gate.io exchange.
Source: Etherscan
The withdrawing addresses showed belief in a continued uptrend, while those depositing were potentially taking profit. The balance in the two activities showed there was no consensus in direction bias.
Axie Infinity holders dip sharply
The number of Axie Infinity holders dropped sharply, with over 1.5K lost in a week, at 166.72K at press time. This meant that they were taking profit from the aforementioned rally.
Source: CoinMarketCap
Such an outcome could derail Axie Infinity’s potential to break past $2. However, if bulls beat bears and gaming tokens continue thriving, AXS may breach $2.
Final Thoughts
- AXS rallies 14%, leading all the gaming tokens in terms of daily gains.
- AXS price faces a key test at $2, with holders declining sharply.
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