Axie Infinity (AXS) price action has been rather dull of late, but in an interesting turn of events, whales have been on the move, pumping price almost 200% on Nov 13.
Massive AXS inflows
On Nov. 13, Axie Infinity price appreciated from a low of $6.33 to a high of $19.12 in a matter of a few minutes. AXS price quickly retraced back to the lower price levels, falling to as low as $3.99 in the following few hours.
One-hour chart AXS/USDT | Source: TradingView
Trade volumes saw a swift rise, with a few traders pulling out of the market, making a quick profit. In tandem with the AXS price, RSI saw a push followed by a quick pullback.
At press time, RSI for AXS was oscillating near the oversold zone presenting bearish pressure in the market. Axie Infinity price traded at $6.96 noting over 5% daily losses.
What could’ve been a pump was seemingly just a pump-and-dump scenario, where the price saw a major rise and soon dropped after a few investors sold at massive profits.
The reason behind the pump was that a Binance account got compromised, and executed a large AXS buy order. A Twitter user by the name of CarlosOMFG claimed that someone bought huge amounts of AXS tokens from his Binance account, which caused the AXS price to pump by 200%.
What Do Metrics Say About Axie Infinity?
Exchange flow balance for AXS showed a major spike in inflows on Nov. 13, just after the price was pumped. Notably, an AXS whale dumped close to three million Axie Infinity tokens and exited the market.
AXS Netflows | Source: Santiment
The inflows corroborated with the data about holdings on the top exchanges, showing a rise of 3.4 million AXS on Binance over the last week. Over the last day, Binance saw another 28,000 AXS entering the supply.
AXS Holdings on the top exchanges | Source: Santiment
A look at holder statistics for Axie Infinity suggested that the top 100 AXS holders held 99.41%. With smaller fish and retailers only holding 0.59% supply, the same spelled trouble for AXS price.
Holder Statistics | Source: CoinMarketCap
Axie Infinity price was down 94.71% from its all-time high, and with supply looking rather concentrated, price action seemed to be whale driven.
For AXS price, going forward, entry of retailers or high confidence from whales could be key for a price rise. However, the recent sell-off has further battered AXS price, and recovery could take some time.
The $6.30 mark could act as a support going forward. However, in the case of another pump, the token could target the $7.50 price level.
Disclaimer: BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
The post Unraveling the Reasons Behind the 200% Pump in Axie Infinity (AXS) Price appeared first on BeInCrypto.