Axie Infinity price braces for volatility with $63 million worth of AXS due to flood markets a cliff unlock


  • Axie Infinity price has held steady above the $4.13 support level for almost two weeks, consolidating within a range.
  • AXS token could witness some volatility soon, with 15.13 million tokens worth $62.62 million due to flood markets on October 20.
  • Previous unlock on July 22 sent the token almost 10% below crucial support as token holders received staking rewards.

Axie Infinity (AXS) price has been trading within a range for the past couple of weeks, withstanding the worst of a market devoid of volatility. However, this could change soon, with the gaming token’s cliff unlock event around the corner.  

Also Read: Axie Infinity price inching closer to fresh 2023 lows could leave over 94% of investors at a loss

Axie Infinity price could break support soon

Axie Infinity (AXS) price has spent the last ten days struggling to hold thin above the immediate support at $4.13, with momentum indicators signaling bearish. Based on the technical outlook, this support floor could break soon, catalyzed by a bearish event on the gaming token’s calendar.

In the current state, the Relative Strength Index (RSI) is below the 50 level, suggesting the momentum is rather weak. Its deviation to the south shows that buyer power continues to dwindle. The position of the Awesome Oscillator (AO) histogram bars in the negative territory also adds to the gloom. With this, Axie Infinity price could lose immediate support, potentially falling to the range low of $4.06.

AXS/USDT 1-day chart

On the other hand, if sidelined investors come in, Axie Infinity price could activate its upside potential, breaking past the range high of $4.37. A decisive daily candlestick close above this level would bring the $5.00 psychological level in sight.

Axie Infinity token unlocks

As part of the bearish catalysts, the Axie Infinity ecosystem has a cliff token unlock event barely a day out. The event, slated for October 20, will see up to 15.13 million AXS token flood the market, adding to its circulating supply. Based on current rates, these tokens are worth approximately $62.62 million.

The tokens will be allocated to the team, advisors, ecosystem fund, play-to-earn, and towards the ecosystem’s staking rewards, akin to the previous unlocks event on July 22. If history repeats, the token could record increased volatility, potentially dropping in value before a possible recovery.  

Staking rewards entails incentives given to token holders for staking their AXS tokens. By staking, token holders support the validation and security of transactions on proof-of-stake (PoS) blockchains. With more tokens adding to the circulating supply, the price could fall, with a possible recovery around the corner as investors look to acquire AXS for staking purposes to merit for the rewards.

With some of the tokens also going towards the project’s play-to-earn scheme, community membership is required for participation, hence increased buying pressure on AXS.

AXS cliff token unlocks

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ethereum ETFs flows data pour in after crossing $1 billion trading volume in first day of launch

Ethereum ETFs flows data pour in after crossing $1 billion trading volume in first day of launch

Ethereum ETFs have crossed the $1 billion mark in trading volume on the first day of launch. Investors won't substitute Ethereum for Bitcoin but would hold both, says Bitwise's Matt Hougan. Ethereum could replicate Bitcoin's price post-spot BTC ETF launch following recent price action.

More Ethereum News

Bitcoin Conference could host huge election showdown with Kamala Harris as potential speaker

Bitcoin Conference could host huge election showdown with Kamala Harris as potential speaker

Bitcoin Conference could be major price catalyst after reports that Vice President Kamala Harris may be one of the speakers. Donald Trump will speak on crypto regulations and a Bitcoin strategy at the conference. Kamala's camp has been asking questions about cryptocurrencies, claims Mark Cuban.

More Cryptocurrencies News

dYdX recovers compromised v3 platform hours after leaked sales attempt

dYdX recovers compromised v3 platform hours after leaked sales attempt

The dYdX team reported an attack on its DEX's version 3.0 platform on Tuesday. The breach came hours after a Bloomberg report revealed that the team could be planning to sell the v3 platform to intending buyers.

More dYdX News

Vitalik Buterin reveals new cryptographic protocol Circle STARKs

Vitalik Buterin reveals new cryptographic protocol Circle STARKs

Vitalik Buterin revealed a new blockchain protocol for enhancing efficiency, Circle STARKs. Circle STARKs will utilize smaller fields to improve speed and maintain security. Polygon Labs and StarkWare are major collaborators in building Circle STARKs for ZK rollups.

More Cryptocurrencies News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.

Read full analysis

BTC

ETH

XRP