AXL in trouble? on-chain metrics point to potential losses
AXL’s recent price slump shows no signs of easing, with on-chain metrics hinting at more pain ahead for the crypto asset.
Axelar, a programmable blockchain interoperability platform with the ticker AXL , fell for three straight days to $0.6152 at press time, bringing its market cap down to $552 million. The altcoin has been in a downtrend since Dec. 16, during which its price has fallen by 40%, with its monthly losses at 27.8%.
Several on-chain metrics suggest that the asset could face more downward pressure in the coming days.
Notably, Axelar’s DeFi ecosystem has lost a big chunk of its total value locked over the past month. Since Dec. 18, the project’s TVL has fallen from $367 million to $254 million when writing, as per data from DeFiLlama. This is a sign of reduced user activity and declining investor confidence.
Additionally, AXL traders have been increasingly moving their holdings to exchanges over the past week, according to data from CoinGlass. Increased exchange net flows could lead to a price correction in the short term as investors might be looking to cash out either due to waning confidence in the project or to move funds into other projects.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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