Crypto Whales Have Started Offloading Axie Infinity Ahead October 20 Token Unlock
Axie Infinity is preparing for its next token unlock event on October 20, which will release 15.13 million AXS tokens into circulation. However, crypto whales holding large amounts of AXS have already begun selling their holdings to preempt potential inflationary pressure. In just three days, these whales have sold off 460,000 AXS tokens worth around $2.07 million. This mirrors the bearish trend observed during the previous token unlock event in July, where AXS price dropped by 26% within a month. With the upcoming event being four times larger, other stakeholders in the Axie Infinity ecosystem are expected to join the bearish action.
Speculative Traders are Closing Their AXS Positions Rapidly
AXS Futures traders have been rapidly closing their positions this week, indicating a bearish outlook for Axie Infinity. Open Interest in AXS has dropped by 49% from $50.4 million on September 15 to $26 million on October 5, signaling capital outflows of $46 million in the perpetual futures markets within three weeks. This decline in Open Interest suggests that existing traders are closing their positions faster than new capital is entering the market. If these trends continue, it is likely that AXS price will drop to new lows.
AXS Price Prediction: Losing the $4 Support Could Catalyze Larger Losses
The upcoming token unlock event on October 20 is expected to drive Axie Infinity’s price down towards $4. The Global In/Out of the Money (GIOM) chart reveals that if AXS loses support at $4, it could result in significant losses. There are currently 283 addresses holding 57,420 AXS at an average price of $4.04, indicating that they may attempt to hold onto their positions if the support level is breached. However, if the selling pressure from whales continues and the $4 support collapses, AXS price could approach zero. On the other hand, if the bulls can reclaim $7, it could invalidate the bearish narrative and lead to a rally towards that range.
Hot Take: Axie Infinity Faces Bearish Pressure Ahead of Token Unlock
Axie Infinity’s upcoming token unlock event on October 20 has triggered a wave of selling by crypto whales and speculative traders. The large-scale offloading of AXS tokens by whales suggests a bearish sentiment in the market, while the rapid closure of positions by futures traders further reinforces this outlook. If these trends continue, it is likely that AXS price will experience significant losses in the coming weeks. Additionally, the GIOM chart indicates that losing support at $4 could have a catastrophic impact on the price of AXS. Therefore, investors should closely monitor these developments and be prepared for potential downside risks in Axie Infinity.
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