One indicator/metric gives away two contrasting narratives for AXS and BNB

ambcrypto.com:

Amidst the ongoing bear market, altcoins have projected a varying picture or rather “wildly different behaviours.” Investors chose some tokens for their severe euphoria and/or profit-taking scenarios. On the contrary, others coins, despite the loss trajectory, showcased vital signs for a rally. At least that’s what investors/traders considered for identifying spots.

A few altcoins noted wildly different behaviours, i.e. some either showed signs of long-term profit-taking, or short-term capitulation. One metric known as the Ratio of Daily On-Chain Transaction Volume in Profit to Loss would be a good indicator of capitulation to see justifiable times to add on to crypto-positions.

First, let us consider Axie Infinity [AXS].

Axie Infinity is one of the first crypto-projects to successfully implement a play-to-earn mechanism. Its approach attracted a lot of users and contributed to healthy platform growth. Axie’s native cryptocurrency AXS recorded significant growth and enjoyed success which saw it peak at $166.

However, strong sell-offs have prevailed since then, pushing it as low as $16. This time is no different. AXS registered a high ratio of profit-taking transactions (indicating a higher likelihood of short-term price retracements). In fact, the token saw about 1.6 times as many profit transactions as loss transactions.

Source: Santiment

The team at Santiment laid out a concerning freefall scenario for this altcoin.

“This is actually high in this asset’s range, and something to be weary of considering their last time the ratio was this high, it signalled the beginning of a price freefall.”

Additionally, looks like AXS holders did sense this situation. One of the reasons why holders decided to abort this play-and-earn ship.

Sour