The world of crypto was taken aback on Tuesday when the news of the largest crypto hack broke out. The Ronin Network announced a loss of over $625 million in USDC and Ethereum [ETH]. As such, Ronin is the blockchain underlying the prominent crypto game Axie Infinity.
How did Axie Infinity react?
On the price front, Axie Infinity’s native AXS token did register a long red candle on its hourly chart. It dipped in value by approximately 7.5%, from $70.37 highs to a level as low as $63.41.
Right after the hack, people did not let go of any opportunity to short Axie Infinity. Santiment’s data revealed that AXS was one among the handpicked coins by traders that continue to see significant short orders placed.
Traders who booked profits too did not shy away from flexing about their guilty pleasure.
Recovery mode on?
From the immediate dip to $63.41, Axie Infinity gradually tumbled to $61.92 on its chart. Right after that, however, it picked up its pieces and managed to register a streak of green candles on the hourly frame. At the time of press, AXS was already trading around $66.4.
Interestingly, the RSI had also flipped its downtrend. At the time of press, this indicator had already crossed the neutral level and was seen heading towards the overbought zone.
The new-formed buy-pressure in the market managed to push the token above its simple moving average as well, indicating that bulls were slowly seizing the show.
Contrary to one’s assumption, the network activity too did not take a back seat. Over the past day, all three address-related metrics—right from new addresses to active and zero balance addresses—witnessed minor upticks. The same can be evidenced from the chart attached below.
Despite such a large hack taking place, the recovery mode seems to be on in full swing in the ecosystem. Axie Infinity’s Jihoz promised the community that they’ll continue building. Tweeting along the said lines, he asserted,