Ronin on Ethereum is the next bullish hope for AXS?

The development of blockchain games and Metaverse has quietly raised the price of not only the Metaverse token but the bigger story as well. While the growing popularity of blockchain gaming tokens is noteworthy, AXS’s winnings make winnings for other tokens seem meager.

However, last week, AXS was largely unchanged after hitting ATH at $ 165.

AXS 4-Hour Price Chart | Source: Tradenview

AXS is waiting for more profits?

After rising nearly 320% over the past 3 months, AXS is trading at $ 154.3 at press time. While there is nothing to worry about on the price front, the volatility looks less dramatic as the price is up just over 12% on the weekly chart.

AXS has been unchanged since October 29, after posting a high ROI of nearly 110.761% year over year. In fact, at the time of writing, the Relative Strength Index also looks overheated as the price struggled just short of the $ 156 mark.

Are the games industry and the cooling metaverse craze causing AXS to lose momentum?

Still picking up speed

Although it hasn’t increased much in the past week, AXS is still inspiring optimism for other tokens. For example, Axie Infinity recently announced the launch of a decentralized exchange (DEX) Katana. This triggered the rally for the Smooth Love Potion (SLP) reward token. SLP is up more than 100% in the last 2 days after the September 2021 slump.

According to Colin Wu, the Katana DEX was launched by Axie (dubbed Ronin) shortly after its release on the Ethereum sidechain and hit $ 163.23 million, while trading volume rose to $ 150 million that day. So what else speaks for AXS besides Ronin from Ethereum?

Supply dynamics

It is noteworthy that the supply of AXS on the exchanges (as a% of total supply) was at its lowest level, while the outflow from the exchange skyrocketed last week. This behavior seems to indicate the belief of the HODLers.

Supply on the exchange (red) and outflow from the exchange (pink) | The source: Sanbase

In addition, AXS can also increase due to volatility, which means that the annual standard deviation of daily returns decreases over a period of time.

AXS volatility (green) | The source: Messari

Additionally, the Sharpe ratio holds value quite well, which makes AXS a relatively safe asset. However, as the 7- and 30-day MVRVs want to heat up, prices could drop in the short term. This offers a nice buying opportunity between $ 130 and $ 140.

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Minh Anh

According to AMBCrypto

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