Axie Infinity (AXS) Price Outlook: Previous Patterns Suggest Bullish Outlook After 16% Drop
Axie Infinity might have tanked sharply recently (now $23.46), but previous signals suggest that there may be upside potential around the corner.
We can't predict the future, but we can analyze what happened in the past. Stack looked at the previous performance of Axie Infinity (AXS). Analyzing 24 historic occurrences where the price fell sharply over a period of 7-day.
Why Axie Infinity's Price Could Move Higher
Essentially, because of several similar occasions in the past. That is to say, we have seen this situation play out before.
Over those 24 past occurrences, we found that 91.67% of the time the price increase by a median 180.66% over the following 60 days.
For example, on January 12th, 2021 we saw the price of Axie Infinity fall by -16.4%, only to rebound by 1047.6% over the following 60 days.
What does this mean?
It's important to consider that this is just one signal. Lots of factors can affect the price of any investment.
Crypto is no different. Social media, developer activity, the number of exchanges and on-chain activity are all factors that can influence the price of any crypto project. Stack factors all these into it's ranking system to make it quick to compare the quality of different cryptos.
If you feel that other factors, including the broader crypto market, are favorable given the suggested 7-day holding period. Then it could represent a good time to invest, or a good entry point. We recommend that you do your own research (DYOR) before making any investment decisions.
What other factor could be moving the price of $AXS?
As mentioned above, several factors can affect the price of any investment. Here are some that Stack can help you track.
The overall crypto market's direction
The broader market is also down by a median -9.4%. Many cryptos are correlated, especially to Bitcoin. So this is likely affecting the price. Going against the grain can work, but should be done with caution.
It's also work paying attention to the broader macroeconomic conditions. As crypto investing becomes more mainstream, it is increasingly becoming correlated to stocks as well.
How active have the developer for Axie Infinity been?
Over the past 4 weeks there have been 0 commits on Axie Infinity's Github account. This compares to an average of 0 commits per week.
Spotting significant changes in developer activity can highlight potential new products being worked on and abandoned projects that might be in decline.
Social media can have a powerful effect on cryptocurrency prices. Even a single tweet can move markets (we're looking at you Elon). It's difficult to gauge sentiment just by scrolling, but you can use tools like Stack to monitor the growth of a project's followers.
Axie Infinity's Twitter followers have increased by 0% over the past 7 days. You can view stats for other networks in the full report for Axie Infinity.