Can a 21% Price Jump in Axie Infinity (AXS) Act as a Catalyst for Renewed Metaverse Enthusiasm?

Crypto News- Last week, AXS admirably defended the critical $4 support level, thanks in large part to a noteworthy surge in user engagement. On October 19, as AXS neared the $4 threshold, data from CryptoQuant brought to light a substantial uptick in activity within the Axie Infinity network.

Interestingly, the chart underscores a monthly low of 173 active addresses on October 15, but after a week of sustained growth, it soared to an impressive 445 active addresses on October 24. This surge in daily active addresses, a standard metric for gauging user activity, paints a bullish picture, signifying heightened user interaction with network services.

Can a 21% Price Jump in Axie Infinity (AXS) Act as a Catalyst for Renewed Metaverse Enthusiasm?

The increased use of the AXS native token in daily transactions provides a logical explanation for the recent positive price performance. However, the lingering question is whether investors will remain committed to the long-term revival of the metaverse or opt for opportune exit strategies.

Meanwhile, the mounting presence of AXS in Exchange Reserves has sparked concerns of potential early exits despite AXS’s 20% price uptick over the past week. Recent on-chain data suggests that confidence in the metaverse sector’s sustained recovery remains rather tepid.

As AXS prices saw an uptick this week, investors initiated transfers of their tokens to exchanges. The CryptoQuant chart underscores the deposit of 354,000 AXS tokens into exchange wallets between October 19 and 26, a trend previously associated with price declines.

Looking ahead to AXS’s price prospects, the $7 resistance level assumes significance. Despite the prevailing positive market sentiment, Axie Infinity’s price may encounter formidable resistance should holders decide to secure early profits. Insights from the Global In/Out of the Money data, reflecting historical buying trends, underscore that the $7 mark could pose a formidable obstacle to the price’s continued recovery.

However, should the surge in user activity persist, there remains potential for Axie Infinity’s price rebound to target the $10 range.