The value of the AXS token, issued by play-to-earn (P2E) giant Axie Infinity, has increased almost 90% since the New Year, raising the price from the $6.0 support floor to the current price of $11.26. CoinMarketCap data shows that AXS token price is down 4.22% in the last day, slightly lower than its four-month high of $13.94 on January 23.
The move comes in light of the impending unlocking of tokens worth millions of dollars.
Axie Releases $63M AXS Tokens During Token Unlocks Event
The Axie Infinity ecosystem unleashed a massive influx of AXS tokens valued at $63 million. Introducing new tokens seems to have ignited a sell-off, causing AXS token price to plunge back to its $11.18 support.
Token Unlocks shows that AXS, ACA, GAL, RON, YGG, and IMX will be unlocked this week. 4.89 million AXS tokens ($63.18m) will be unlocked on January 23; RON will be unlocked on January 27 about 42.93m (about $24.25m); IMX will be unlocked on January 28. https://t.co/08s7zlI6rE
— Wu Blockchain (@WuBlockchain) January 23, 2023
Unlocks are normally bearish catalysts as the value of a token drops after unlocking because the process releases more coins into the market; hence supply rises, demand falls, and with it, the price.
Based on the TokenUnlocks website, a dashboard using on-chain data to track tokens and inform users of an upcoming event, Axie Infinity’s unlock saw creators release 1,8% of the total coins or 4.89M tokens (~$63.32M).
Nevertheless, investors and gamers still preserve their faith, given Axie’s reputation with a transparent roadmap for the ecosystem’s progress.
Will AXS Make The 37% Jump?
At the time of writing, the AXS token was trading at $11.27 after losing all the gains made on Sunday. The price was sitting on the support at $11.18 after the bulls flipped it from resistance on January 22. The price is currently confronting a week-long barrier at $13.98, a milestone that, if achieved, would pave the way for further gains.
An increase in buying pressure from the current position could open the path for the crypto gaming token to target the $13.98 hurdle. Notice that the bulls attempted to tag this level earlier last week, but the attempt proved premature as the price retraced below the $12.56 level and consolidated there for the rest of the week.
A daily candlestick close above the resistance at $13.98 would increase the chances for AXS to reach the $15.42 target, signifying a 37.24% increase from the current price.
AXS/USD Daily Chart
The bullish outlook is supported by several indicators, starting with the fact that AXS price was sitting on solid support at $11.26, embraced by the 200-day Simple Moving Average (SMA) at $11.18. This level has also been a week-long support giving AXS bulls a breather as they prepare for a journey upwards.
In addition, the Moving Average Convergence Divergence (MACD) indicator was also moving upwards in the positive region above the zero line, indicating that there were more buyers in the market than sellers. Also adding credence to the bullish postulation was the formation of a bullish cross when the 50-day SMA crossed above the 100-day SMA.
A bullish cross often gives an early signal of a potential new bullish uptrend. It occurs when a faster moving average crosses above a slower moving average, in this case, the 50-SMA and 100-SMA, respectively.
Conversely, if buying momentum reduces, bears could pull AXS price lower to lose the current support at $11.18, as well as that offered by the 200-day SMA. In such a case, the price could approach the 50-day SMA at $8.14 and then the 100-day SMA at $7.99. In extreme cases, the price could trend lower to retest the $6.0 support floor.
The Relative Strength Index (RSI) was also tipping downwards to indicate that bulls were booking profits and exiting the market. Hence the AXS price could drop lower.
While AXS bulls and bears battle for control, switch your attention to Meta Masters Guild (MEMAG). This Play-to-Earn coin might hit 50x gains in 2023, with industry experts describing it as the “future of mobile gaming.” The success of the MEMAG presale is a testament to how much investors trust the project, having raised an astounding $1.5 million in a matter of weeks.
Read more on Meta Master Guild here to find out why experts say MEMAG will explode. You will also see how to participate in the presale of its native token MEMAG – currently recording $1.98 million in token sales.
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