Axie Infinity's AXS token has seen a slight 0.52% price decline over the past 24 hours, with the price dropping from $4.91 down to $4.89. While this dip is relatively small, it does continue the broader downtrend that AXS has been on over the past month and six months. Looking at the key data points for AXS on August 23, 2023, there are some notable takeaways for traders and investors to consider.

To start, AXS currently has a market capitalization of $689.32 million, making it a mid-cap cryptocurrency. The 24-hour trading volume came in at $16.06 million, which is considered moderate compared to other major cryptocurrencies. Over the past hour, AXS has dropped 0.37%, showing some near-term bearish momentum.

Zooming out further, the 1-day and 7-day changes also remain in negative territory at -0.52% and -8.81% respectively. This indicates that sellers have maintained control over the AXS market recently. The 1-month change of -23.67% and 6-month change of -53.59% highlight just how significantly AXS has pulled back from its 2021 highs.

However, when looking at the longer-term price chart, AXS appears to have found some support around the $4.80 - $5.00 area after falling from over $150 in November 2021. This could indicate that much of the extreme froth has been wiped out, and AXS may be bottoming out at these levels. The key will be whether buyers can step in and push AXS back up through overhead resistance levels.

What's Behind the Recent AXS Downtrend?

The broader cryptocurrency market downturn since late 2021 has certainly impacted AXS. Additionally, some of the hype and speculation around blockchain-based play-to-earn gaming has died down from its peak. With less retail investor enthusiasm, trading activity and volumes have declined across metaverse-related coins like AXS.

However, the fundamentals and real-world usage for Axie Infinity have continued growing. User growth, revenue, and gameplay activity metrics all remain strong. So the disconnect between Axie's strong on-chain usage and AXS's price retreat could present an opportunity for long-term investors. If the macroeconomic conditions improve and the crypto market sentiment turns bullish again, AXS would likely see renewed interest.

Is Now a Good Time to Buy AXS?

Dollar-cost averaging into positions around these levels could make sense for investors with a higher risk tolerance and long-term outlook on Axie Infinity. Trying to time the exact bottom is difficult, but gradually accumulating in the current range can help reduce risk.

For short-term traders, additional caution may be warranted. Wait for confirmation of an uptrend with higher highs and higher lows before entering new long positions. Pay close attention to trading volumes and look for decisive moves above resistance around $5.50.

Axie Infinity remains one of the most promising blockchain gaming ecosystems. While its token has been caught up in the crypto downturn, the project still has solid long-term potential. AXS is likely to remain volatile in the near-term, so proper risk management is essential. But these depressed prices could offer an opportunity for strategic investors.

Should You Buy or Sell AXS Now?

With AXS down 53.59% over the past 6 months, some investors may be wondering if now is the time to buy the dip or sell out of the position entirely. There are reasonable arguments on both sides of this debate.

On the bullish side, the plunging prices could indicate that AXS is currently undervalued relative to its strong platform growth. Axie Infinity has among the highest NFT trading volumes and user activity out of any crypto game. As blockchain gaming adoption increases, AXS would likely benefit. Additionally, if the overall crypto market recovers, beaten down altcoins often see large rebounds. Being contrarian and buying when others are fearful can pay off handsomely.

However, the bears would point out that AXS price could still have further room to fall before finding an ultimate bottom. In a recession environment with risk assets selling off, crypto may still be in the early stages of its cool off period. AXS continues making new lows on its weekly chart, showing strong downward momentum still in play. Also, AxieInfinity faces rising competition from other play-to-earn games, threatening its first mover advantage. Selling now to avoid further losses or shifting capital to other opportunities are arguments for selling AXS here.

Overall, AXS remains highly speculative. Consider your investment timeframe and risk tolerance before deciding to buy or sell at current prices. A balanced approach may be prudent.

Should You Invest in Axie Infinity Long-Term?

When looking out beyond the current bear market, Axie Infinity and its AXS token appear to have promising long-term potential. The key factors that could make AXS a good long-term investment include:

• First Mover Advantage - Axie stands out as one of the first major and most popular blockchain games, giving it strong brand recognition and network effects.
• Growing User Base - Axie has over 2.5 million daily active users. Its community remains highly engaged despite the market downturn. User growth is a positive indicator.
• Future Platform Expansion - The vibrant Axie ecosystem lends itself to integration with virtual worlds, new game modes, scholarships, and more. This expandability adds long-term upside.
• Upcoming Staking Rewards - Axie DAO plans to introduce staking soon. This would let AXS holders earn yield on their investment. Staking rewards could create buying demand and reduce token selling pressure.
• Speculative Appeal Returning - If the crypto bull market ever returns, speculative assets like AXS are likely to once again attract investor interest, potentially sparking major price rebounds.

However, risks such as competitors eating into Axie's market share, regulatory uncertainty, and continued market volatility could slow mainstream adoption. But as blockchain gaming grows, Axie Infinity remains well-positioned for the long-term due to its strong early leadership position and committed user base.