AXS Price Spikes 56% Ahead Of Axie Infinity’s Upcoming Token Unlock

Key Takeaways:

  • Axie Infinity plans to unlock 4.89 million AXS tokens on Jan 23.
  • Interestingly, AXS price spiked 56% since Jan 22 despite the traditionally bearish update.
AXS price spiked 56% in two days, ahead of a Axie Infinity token unlock on Jan 23
AXS price spiked 56% in two days, ahead of an Axie Infinity token unlock on Jan 23

NEW DELHI (CoinChapter.com) — The price of AXS, the native token of play-to-earn gaming platform Axie Infinity, spiked more than 50% in two days to reach $13.94 this Jan 23. The uptrend came a day before unlocking millions of dollars worth of AXS tokens, which comprise about 1.8% of its total supply.

Simultaneously, the dollar valuation of AXS’s open interest contracts surged by more than 148% to reach $102.2 million in the past 24 hours. An increase in open interest suggests an influx of bullish funding for a token.

Axie Infinity plans to unlock 4.89 million AXS tokens on Jan 23, currently worth about $63.8 million. Traditionally, an increased supply of a crypto token often corresponds with a price decline. In addition, projects often lock tokens to prevent early investors and team members from dumping their holdings to book profit.

AXS open interests spiked 148% in 24 hours
Open interests spiked 148% in 24 hours. Source: Coinalyze

As a result, crypto projects often schedule major announcements around token unlocks so that investors with now liquid holdings refrain from immediately booking profits.

Also Read: Ravencoin (RVN), Nexo (NEXO), and Synthetix (SNX) gain over 20% – reversal ahead?

Furthermore, the trend has made investors expectant of positive news around token unlocks, transforming the bearish catalyst into a bullish one. As a result, bulls are buying AXS tokens in anticipation of positive announcements, while the increased liquidity might attract more buyers to the market.

AXS Price Rally Hits A Wall Near 200 EMA

AXS price surged by 40% on Jan 22, with the Axie Infinity governance token continuing the rally on Jan 23. But bears moved to defend the 200-day EMA (green wave) resistance, forcing AXS to pare gains.

Nonetheless, the rally helped AXS’s price reach a four-month high before correcting. AXS price has followed the wider crypto market recovery, spiking more than 135% from Jan 1’s low of $5.92. The token’s uptrend helped Axie Infinity’s price flip a multi-month descending trendline resistance into support.

Additionally, AXS’s 20-day EMA (red wave) sloped upwards to needle above the token’s 100-day EMA (blue wave) to form a bullish technical pattern called the golden cross. Market participants often consider the pattern an indicator of positive investor sentiment.

AXSUSD price chart with RSI and a golden cross
AXSUSD price chart with RSI and a golden cross. Source: Tradingview.com

Thus, if new buyers enter the market, AXS’s price might exceed the 200-day EMA resistance, near $13.8. Breaking and consolidating above immediate resistance might provide Axie Infinity the momentum to challenge resistance near $16 before paring gains.

Also Read: Investors Cash Holdings at Record High – Good News for Stocks or Bonds?

Meanwhile, the relative strength index for AXS is overbought, clocking at 81.71 on the daily charts. Overbought RSI levels often precede a bearish trend reversal, making the pattern a sell signal for traders.

As such, the Axie Infinity token risks falling to support near $12 due to overbought RSI risks. Breaching below immediate resistance could force AXS to shed 16.5% to test support near $10.8 before recovering.

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AXS, AXS Price Spikes 56% Ahead Of Axie Infinity’s Upcoming Token Unlock

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