Axie Infinity: AXS price risks deeper losses despite 90% drawdown already
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Interestingly, an AXS technical setup also predicts a 2,500% price rally despite the token facing major headwinds ahead.
Axie Infinity (AXS) has dropped by roughly 90% after peaking out at $172 in November 2021.
AXS's sharp correction has made it one of the worst performing digital assets among the top-ranking cryptocurrencies. Moreover, it could undergo further declines in the coming months, according to a mix of technical and fundamental catalysts listed below.
Low player count dampens AXS demand
To recap, AXS serves as a settlement token within the Axie Infinity's gaming ecosystem, allowing players to purchase native nonfungible tokens (NFT), a flurry of digital pets called "Axies."
It also acts as a work token that players can spend to breed new Axies.
New users that enter the Axie Infinity ecosystem need Axies to pit them in a battle against other Axies. When they win, the platform rewards them with another native token, called Smooth Love Potion (SLP) while winning larger tournaments grants them AXS.
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