NFT: Axie Infinity (AXS) Fundamental & Technical Analysis
This is the third newsletter in the NFT coin series! Written by Gaurav and myself, you will find an FA & TA analysis.
Summary
Introduction
Fundamental Analysis
2.1 Token Metrics
2.2 Features
2.3 Roadmap
2.4 ConclusionTechnical Analysis
3.1 Global View
3.2 Fibonacci Levels
3.3 VPVR & POC
3.4 Weekly Plan
3.4.1 First scenario
3.4.2 Second scenario
3.5 BTC PairOverall
Bonus
Introduction
What is AXS Axie Infinity?
Axie Infinity or referred to by many as the Bitcoin of the gaming NFT community on Twitter. I donāt know why this name got stuck but still, I will let it be. In the last 3 months since the NFT craze took over a new level, we saw the rise of the Axie Infinity to new heights. Axie Infinity is aĀ PokĆ©mon-inspiredĀ digital pet universe built on theĀ EthereumĀ blockchain where anyone can earn token rewards through skilled gameplay and contributions to the ecosystem. To create a better user experience and promote scalability, the Axie Infinity team is building a layer-2 sidechain namedĀ Ronin.
It would be safe to say that people born in the 1990s have come across the name Pokemon once as it has now become a billion-dollar industry. Similar to Pokemon Players canĀ battle, collect, raise, and buildĀ a land-based kingdom for their pets (known asĀ Axies). Currently, players can start the game by purchasing Axies from other players on theĀ Marketplace.
Fundamental Analysis
Token Metrics
TheĀ AXS tokenĀ is theĀ ERC-20 utility tokenĀ of the platform and is used for:
Governance: AXS token holders will be able to stake their tokens and participate in governance voting.
Staking: Players will be able to stake their AXS to earn weekly rewards.
Payment: Players can use the AXS token to play games and conduct payments.
Features
Current features of Axie Infinity include:
Battle: Pets known asĀ AxiesĀ can battle against each other to level up and evolve.
Breeding: Axies can be bred to create new offspring.
Land: Homes and bases for all Axies, which can be upgraded overtime using a variety of resources and crafting ingredients.
Marketplace: A decentralized marketplace for trading Axies with global players.
Roadmap
Axie infinity Roadmap has interesting upgrades in the near future:
Launch of Staking Dashboard and enable staking rewards, decentralized governance, and Play to Earn for AXS.
Release of Axie Infinity on iOS and Android.
Release of Lunacia SDK alpha.
Keynote Conclusion
Axie Infinity has all the right things going for it. The community engagement for the protocol has been off the charts.
The most important thing which the team has been able to achieve with Axie Infinity is providing a fun experience to its users.
People engage with Axie Infinity to be entertained and get away from their normal chorus. Providing such experience in the world of crypto which is usually associated with risky calls and a lot of research is just priceless.
Axie Infinity has a bright future as it is one of the first ones that has achieved such success in the NFT gaming world. But saying that it will also face tough competition with new projects that would be released in the industry with new features.
The Axie Infinity team has set a new bar in the industry, and they will have to just keep pushing it higher.Ā
Gaurav Tripathi ā@CryptoTripathi
Reminder
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Technical Analysis
Global View
As I said in the last newsletter on OCEAN, if youāre checking the market daily you know what happened a few days ago, a market sell off. AXS was not spared and plunged with the rest of the market before finding support on the EMA 100 (H12).
Now, EMA 21 acts as a resistance and AXS is compressed between these two EMAs.
Fibonacci Levels
Here is the Fibonacci retracement on an H4 chart between the high of the last pump and the low of the sell off.
As you can see, 0.382 fib level ($70.83) is acting as a clear resistance. $70 was a resistance during the previous week in the previous accumulation range. Once this level is flipped as support, AXS should have enough space to run toward $80.
VPVR & POC
Now, you can see again how $70 is an important level. Range resistance, Fibonacci level, and POC on this H4 range!
In fact, AXS just reintegrated his previous range and at the moment he's trying to hold the middle of it.
Weekly Plan
First scenario:
AXS find support on the 0.236 fib at $65
Bounce from here and retest $70 (key level) with few consolidation candles
R/S flip and upward continuation toward $80
Second scenario:
AXS failed to find support on the 0.236 fib at $65
Bearish retest and further correction toward previous low at $56.10
Reversal pattern around here followed by a bounce toward 0.236 fib
BTC Pair
Currently compressed between two fibs, I think AXS/BTC will not hold this Fibonacci level for long. We should revisit 0.001214 sats and potentially 0.0009 sats depending on Bitcoin's future movements.
This is just an idea, but AXS were in a big and long run for a while and even though it has been consolidating under resistance for a few weeks, I think it should retest a few lower levels before heading back to new highs.
Overall,
AXS is probably the best known NFT project in the crypto-sphere and with the rise of everything related to NFT, AXS remains for me a very good long term investment. A bigger correction would not surprise me at all to build a nice bullish structure that lasts over time.
Anthony ā@AnthoXBT
Bonus
More great things are coming! We will be shooting a video/interview with Gaurav in the coming weeks which you can find on his Think BIG YouTube channel.
Also, stay tuned as four more NFT newsletters are coming in the next few days. Thanks for reading and supporting us!
If you like it, donāt forget toĀ subscribe,Ā share andĀ follow theses account on Twitter: @AnthoXBT & @ApeBaguette