AXL has seen a three-day price drop. What do the blockchain metrics indicate?
Current AXL Metrics
AXL's price dropped to $0.6152, reducing its market cap to $552 million. Since December 16, its price has dropped by 40%, with monthly losses at 27.8%. Axelar's DeFi ecosystem has shed a large portion of its total value locked, dropping from $367 million to $254 million over the past month, showing decreased user activity and investor confidence. Increased AXL exchange inflows could signal investor intentions to cash out or shift funds to other projects.
Negative Market Impact
Social sentiment on AXL has turned bearish, with a weighted sentiment of -0.818 indicating increased trader pessimism. Demand among derivative traders has decreased, with AXL futures open interest falling from $19.9 million to $10.44 million. Overall market uncertainty, driven by the Federal Reserve's hawkish stance on interest rates and rising bond yields, is adding further pressure on both traditional and crypto markets.
Technical Analysis and Prospects
On the daily AXL/USD chart, the MACD indicator shows a bearish signal as the MACD line crosses under the signal line, indicating a potential price decrease in the short term. The Chaikin Money Flow Index reads -0.11, indicating mild bearish momentum. However, interest from large holders has increased with whale wallet inflows rising from 128.48k tokens to 2.59 million between January 6 and January 8. If Bitcoin stabilizes at higher levels, this could support AXL's price rebound in the future.
Technical and market factors suggest potential short-term risks for AXL, but increased whale interest could stabilize its future trajectory.
