Axie Infinity Dips Further Following Major Hack
Popular play-to-earn game Axie Infinity (AXS) isn’t enjoying the best of times since it suffered a major hack on March 23, where it lost $625 million. Active daily users have dipped, and the AXS’s price has followed suit with a drawdown of 60% from its all-time-high figure of $164.90.
The project is attempting to from the effects of what experts have called the largest hack in DeFi history. Chief Operating Officer for Sky Mavis—developers behind Axie—Alexander Larsen has taken responsibility for the sordid events that have left investors on edge.
While accountability won’t bring back investor funds, Axie Infinity is working hard to refund investors and has raised about $150 million to compensate them. Despite the positive effort on this front, the guys at Axie Infinity have another crisis on their hand㇐Axie Infinity’s price keeps dipping, and its market value won’t offer much in terms of being an investment option.
AXS Struggles To Shrug Off Major Ronin Network-Hack Incident
AXS’s price dropped by 7.3% on Wednesday, March 30th, just a week after the hack. Two weeks after the hack, it fell by almost 30%. April 11th saw the token dip even further to its lowest level at $44.92 since March 16, when it traded at around $46.65.
However, AXS managed to rally to $64.58 by April 5th but has dipped to the $45 - $48 region support region, where it appears to swing. Beyond the ailing Axie Infinity price, Sky Mavis highlighted that the total number of DAUs or daily active users on Axie Infinity fell to 45% a day before they discovered the Ronin hack.
These are concerning statistics for a large section of AXS investors hoping that things will look up sooner rather than later. But more dips and negative news are gradually weakening buyers' sentiment, making the coin's future more uncertain.
Is A Bounce Back On the Cards?
Despite moves by Sky Mavis to assure users who lost funds from the Ronin hack that they would reimburse them, the market hasn’t been kind to Axie Infinity, with bearish prospects kicking them while they’re down.
The $45-mark area has served as a significant accumulation zone for traders looking to trade AXS for some time now. We’ve seen slightly more 24-hour trading volume between $265 million and $404 million at that mark than when it traded just above the $50-level last weekend, with volume ranging from $330 million to as low as $217 million.
However, on a worrying note, AXS’s price trend shows its RSI is putting out lower lows, highlighting the presence of selling pressure overwhelming the token’s market. Even if the $45 support holds and AXS bounces back up, the $70.2-level could serve as a solid resistance that may once more drive the gaming coin back towards a bearish path.
