High-profile crypto trader and analyst Michaël van de Poppe is charting Axie Infinity’s (AXS) path ahead, after the gaming asset skyrocketed over the past 30 days.
Axie Infinity’s governance token AXS grew in price by over 800% in the past month, according to CoinGecko, as the blockchain-based trading and battling game became the the highest-grossing decentralized application (DApps) on record.
AXS holders can shape the direction of the in-game universe and vote on proposals affecting the platform.
Axie Infinity’s growth comes as the rest of the crypto market takes a tumble, losing $300 billion in overall market cap in the past month.
With AXS up 9% on the day at time of writing – Van de Poppe says AXS appears overbought, and traders are risking a “potential heavy loss” if they choose to enter the market. AXS will ultimately correct, says Van de Poppe.
“The risk, or the downside, is significant with chasing a coin like this… This is way too overextended.”
Van de Poppe says that traders who wish to jump into AXS should look to buy in when the asset is nearing levels of support rather than areas of resistance. The first level of support is in the 0.00055 satoshis (sats) region, followed by 0.00035 and 0.00015.
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