Web3 Gaming Token $PIXEL Flashes Bearish Reversal Signs After 37% Rally — Is the Momentum Fading? Jimmy Aki | usagoldmines.com

The crypto market started the week strong, building on Bitcoin’s hope of a rally akin to gold’s record-setting performance.

Yet, the Web3 gaming sector tells a different story—struggling to reclaim its post-COVID boom, with 2024 erasing over $20 billion from its niche market.

Over the past 30 days, the GameFi niche has slipped another 9%.

Despite this broader pullback, the total crypto gaming market cap still holds above $11 billion, and standout tokens like Pixel are showing resilience, posting a 37% surge in the last 24 hours.

$PIXEL Sees Uptick in Gamers’ Activity and Interest

Launched in 2021, Pixels ($PIXEL) is a social gaming platform initially developed on the Polygon blockchain before migrating to the Ronin Network.

The $PIXEL token is used within its gaming ecosystem to buy upgrades, cosmetics, and other items that enhance the player experience.

Unlike many blockchain games, $PIXEL has achieved remarkable engagement. In May 2024, it recorded over 1.03 million daily active addresses and players.

Although currently down about 70% from its 2024 peak, $PIXEL has seen a 14% increase in unique active wallets over the past 24 hours, resulting in more than 40,000 transactions during the same period.

A major factor in $PIXEL’s sustained growth has been its transition to the Ronin blockchain.

According to the project founder, Luke Barwikowski, Ronin offered a ready-made audience thanks to its ties with Axie Infinity, dramatically reducing user acquisition friction.

In a past interview, Barwikowski also emphasized the significance of $PIXEL’s February 2024 Binance listing, calling it a milestone that took three years to achieve.

He praised Binance’s deep understanding of Web3 tokenomics and noted the platform’s intense listing process as a sign of credibility.

Pixels Expands Through Multi-Game Integration

On April 15, Pixel made headlines again by announcing its move toward a multi-game model, beginning with integration into The Forgotten Runiverse, a fantasy RPG.

The collaboration allows users to spend and earn $PIXEL tokens in multiple game environments. Players from the Runiverse can now exchange in-game currency (Quanta) for $PIXEL to purchase Mana, boosts, and more.

Despite these strategic wins, $PIXEL hasn’t been immune to broader market challenges.

A recent report from DappRadar revealed that funding for the web3 gaming sector plunged by 71% in Q1 2025 compared to the same period in 2024.

As a result, $PIXEL’s valuation has declined dramatically, slipping from over $1 billion to just $130 million.

$PIXEL/$USDT Technical Indicators Point to Potential Reversal

The $PIXEL/$USDT chart currently shows signs of a potential bearish reversal following a strong price rally.

After climbing to a local high near $0.050, the asset exhibits signs of structural weakness, including a developing Head and Shoulders pattern on the one-hour chart.

The neckline of this pattern lies around the $0.042 level. A confirmed breakdown below this area could prompt further retracement, potentially toward the $0.034–$0.032 support zone, aligned with earlier consolidation areas and Fibonacci retracement levels.

Recent candles show long upper wicks and smaller bearish bodies, adding to the narrative of fading buying pressure.

The Relative Strength Index (RSI) has also fallen to around 54.03 after previously entering the overbought zone above 70, another signal of slowing momentum.

Fibonacci extension levels cluster between $0.037 and $0.041, and if the head-and-shoulders pattern plays out, the price could drop toward the 1.618 extension at $0.03713 or even as far as the 2.618 extension at $0.03897.

If selling pressure increases, a move to the lower Fibonacci targets near $0.035–$0.032 would not be unexpected.

The post Web3 Gaming Token $PIXEL Flashes Bearish Reversal Signs After 37% Rally — Is the Momentum Fading? appeared first on Cryptonews.

This articles is written by : Nermeen Nabil Khear Abdelmalak

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