Ecosystem released $64 million worth AXS-locked tokens.
Prices saw a rise despite token unlock.
Prices rose by nearly 40% in the 7 days.

AXS, the native token of the web3 game Axie Infinity, surged nearly 40% in the past few days. Due to the rally, the token earmarked a new four-month high. The rise is attributed to the unlocking $64 million worth of AXS-locked tokens. Although token unlocking is said to have a decreasing effect on the token value, AXS saw a rocket propelling to mark new highs.

Axie Infinity witnessed a deserted platform in the aftermath of the $650 million Ronin bridge hack. Interest in the coin is perhaps being rekindled by the performance of the original play-to-earn (P2E) coin, AXS, helping to refocus investor and trader attention on the coins in the P2E segment.

The current token unlocking was relatively smaller in size. The next unlocking is scheduled in May, is bigger and can send the token in bearish momentum.

Here’s what the charts reveal

The AXS prices show a possibility of a bull flag after the price rocket. The EMA ribbon lies below the current price action, with a bullish crossover being formed (green circle). The volume shows high volatility, along with turbulent OBV, giving out ambiguous signals. Prices may go into a bearish momentum post-unlocking in May.

The CMF lies akin to the zero-mark to show neutral market persisting. The MACD records buyer bars, while the lines split in the positive zone. The buyer interest improves along with seller interest as both rise together. The RSI holds a spot close to the 70-range to display buyer pull in prices.

4 Hour POV

The closer time frame suggests prices to face staggered rise. The rising prices are met with sellers who wish to book profits. The CMF slips to the zone below the baseline to show a sideways movement. The MACD records sellers bars with lines diverging under seller influence. The RSI moves closer to the 50-range to show declining buyer grip.

Conclusion

The token defied the theoretical movement after the token unlocking. A bearish momentum is predicted to occur after May unlocking. The holders must watch for the support near $8.07.

Technical levels

Support levels: $8.07 and $6.08

Resistance levels: $14.77 and $19.46

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Source: https://www.thecoinrepublic.com/2023/01/27/axs-players-fled-the-platform-can-prices-rise-back/