The Unraveling Bearish Pattern

Since the summer of last year, Axie Infinity (AXS) has been painting a pretty gloomy picture with what analysts are calling a gigantic bearish reversal pattern. Think of it as a dark cloud hanging over your favorite sunny beach day — not great, right? This bearish trend is likely to send AXS prices spiraling down by as much as 95% in the not-so-distant future, and that’s no laughing matter.

Inverted Cup and Handle: The Cautionary Tale

To put this bearish pattern into perspective, AXS has fallen victim to the infamous “inverted cup and handle.” Imagine a crescent moon, but instead of glitz and glam, it’s signaling impending doom for the cryptocurrency. This formation typically emerges after a modest upward retracement and usually ends with a dramatic break below the cup pattern’s neckline. Yikes!

Technical Analysis Breakdown

According to good ol’ technical analysis, an inverted cup and handle breakout often means we’re staring down the barrel of a price plunge equal to the distance between the structure’s peak and support. AXS experienced a wild rally in the latter half of 2021, creating this inverted cup shape, only to hit rock bottom in 2022 and resume a downward spiral.

• **Latest Price Point**: As of July 24, prices are looking precarious.
• **Potential Breakdown Target**: Analysts are eyeing $1 as the potential new floor — yes, that’s a shocking 95% drop!

Bad Press and Worse Trends

If you thought bad news travels fast, then meet Axie Infinity. It’s not just the bearish trend in the crypto market that’s hurting AXS; the project itself has been on shaky ground. Accusations of failing to maintain a sustainable gaming platform have shifted the mood from hopeful to hopeless. And a $600 million hack that happened earlier this year didn’t help—it’s like your favorite ice cream shop got robbed and you’ve opted for kale smoothies instead. Oof!

Revenue’s Downward Spiral

To prove that point, let’s talk stats. Axie Infinity’s monthly revenue has plummeted a staggering 98% from its peak of $364.4 million in August 2021. According to the data, what was once a booming ecosystem is now resembling a haunted house—once bustling with life, now eerily quiet. Fun times!

Can Axie Infinity Rise Again?

However, not everything is lost. Financial analyst Yanto Chandra believes Axie Infinity may still forge a new chapter amid the evolving GameFi landscape. Call it the Phoenix of gaming platforms — it might just find a way to rise from its ashes, reinventing itself and finding new avenues for growth.

“Axie Infinity can reinvent itself and secure a new pathway in this fast-paced gaming environment.” — Yanto Chandra