Axie Infinity’s Price Faces Bearish Signals Ahead of Token Unlock
- Axie Infinity’s price has gained 33% in the past month, but an upcoming token unlock event could impact its price.
- The token unlock program, set to release 3.63 million tokens on June 22, may affect the market demand for Axie Infinity.
- Investors who have staked and held onto their tokens have contributed to the recent price rally.
- A steady rise in Axie Infinity Mean Coin Age suggests that holders are looking to stake their tokens for greater rewards.
- However, on-chain data indicates that some traders are selling off their tokens ahead of the unlock, potentially causing a market saturation.
The Impact of the Token Unlock on AXS Price
- If long-term holders decide to sell off their token rewards after the unlock, it could significantly decrease AXS’s price.
- The critical support level at $5 may determine whether AXS can maintain its price or experience a retracement towards $4.50.
- If holders continue to sell off their token rewards, AXS may inevitably retrace towards $4.50.
- The bulls have a chance to retain control if AXS rises above $8 before the token unlock, but this scenario is unlikely.
- If the resistance at $7 can be flipped, AXS may rally towards $8.
Hot Take: Will AXS Overcome the Challenges of the Token Unlock?
Axie Infinity’s recent price rally has been driven by token holders staking their tokens for rewards. However, the upcoming token unlock event poses some bearish signals. On-chain data shows traders selling off their tokens, potentially leading to market saturation. If long-term holders decide to cash in on their rewards, it could significantly impact AXS’s price. The critical support level at $5 will be crucial in determining the future direction of AXS. If the bulls can overcome the challenges and push past resistance levels, AXS may have a chance to rally. However, it remains uncertain whether AXS can maintain its price or experience a retracement towards $4.50. Only time will tell how the token unlock will ultimately affect Axie Infinity’s price.