Axie Infinity recently pushed the release button on Raylights, its first-ever mini-game. Originating from the Web3 gaming firm Quicksave in Finland under the Sky Mavis brand, Raylights addresses adoption and usability challenges with GameFi.
Given the decline in the number of active players over the past year, AXS may not gain much on the news.
AXS has been declining for over two months now, with the price staying below its June/July lows. The downtrend could continue over the next few weeks.
Higher timeframes, such as the 4-hour and daily, showed a bearish market structure. This makes it plausible to interpret the lower timeframe bias as bearish. The short-term momentum was bullish at press time. The altcoin’s series of higher lows and higher highs over the last few days demonstrated it to be so.
At £10.1, there was significant resistance going all the way back to April 2021. Furthermore, this very level has been crucial over the past week. Even more recently, it was found to still be resistant. A bearish order block appeared to have established.
The Relative Strength Index (RSI) indicated lower timeframe bullish momentum. The Bollinger Bands around the price were rather close together, which showed that AXS had not recently experienced any volatility. Additionally, the low trading volume suggested that the rally from £9.33 might not be strong.
In the coming hours, an expansion of the Bollinger Bands would signal a resumption of volatility. The lower band near £9.68 can be viewed as very flimsy support in the interim.
According to Coinglass data, the Open Interest figures were around £66 million last week, coinciding with the price recovering from the £9.6 low.
In the past three days, the OI has increased, but generally the data was still not useful. If there is a spike in OI after a rise past £10.1, the lower timeframe uptrend may continue. A failure to surpass £10.1, on the other hand, could result in additional strength for short sellers in the coming few days.
Some events this year, such as the £528 million exploit of Axie Infinity’s Ronin Bridge, seem to have diminished confidence in the GameFi ecosystem.