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Axie Infinity Price Prediction As AXS Explodes 56% On Homeland News

01/24/2023
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Axie Infinity (AXS) has recorded an impressive rally since the onset of 2023, surprising cryptocurrency analysts as the blockchain-based gaming token surged almost 85% since the New Year. In the last week alone, the Axie Infinity price is up 40%, and the upward trend appears to be growing.

At the time of writing, the AXS token has surged 40% to trade at $12.77 (56% since Sunday’s opening), with a 24-hour trading volume of $1.4 billion and a live market cap of $1.3 billion, putting it at #41 on CoinMarketCap. Notably, the trading volume recorded is a 994% increase from the previous trading session. With this 24-hour price track, AXS approaches the four-month high of $13.94.

Axie Infinity Team To Counter The $64 Million Token Unlock Bearish Catalyst With Positive News

The recent price rally for Axie Infinity can be attributed to the company co-founder Jeffrey Zirlin’s announcement that they were working on a new gaming project christened Homeland.

Based on the report, Homeland would expand the Axie Infinity game, with the community encouraged by this news, as it would increase the value of AXS tokens in the cryptocurrency market. The development comes despite a dramatic drop in the game’s player count in the last 12 months from 2.78 million players in January 2022 to around 430,000 over the last month.

Another reason for the stunning rally in AXS price is the impending unlocking of millions of dollars worth of tokens. From the reports, the dollar value locked in the number of open contracts in perpetual futures linked to AXS token is now $104 million, after increasing by over 155% in 24 hours. This increase in open interest parallel to a price rally suggests an influx of new money on the bullish side.

Data from TokenUnlocks shows that the recent positive market activity comes in the run-up to over 4.8 million AXS token unlock which is expected to happen today, January 23, 2023. This is approximately $64 million at current prices and is the equivalent of 1.8% of AXS’s 270 million total supply.

Unlocks are often bearish catalysts, freeing up liquidity while opening doors for investors to lock in profits. Tokens are locked up to keep investors from selling their holdings all at once, causing price dumps.

The astonishing rally results from the hope that the Axie team will announce a positive catalyst that will counteract the bearish impact of the token unlock.

Talking to a news site, Flex Hartmann, managing partner at crypto investment firm Hartmann Capital, said, “crypto teams have started building a track record for saving big announcements for unlock days.” He also noted that it had happened so consistently that people now expect a bullish catalyst around unlocks.

Axie Infinity Price Trades At $13.33 – Key Levels To Watch

Since January 1, the AXS price has recorded a series of higher lows leading to the appearance of an ascending trendline as seen on the daily chart below. At the time of writing, Axie Infinity hovered around $13.33 as bulls fought immediate resistance from Monday’s intraday high of around $14. 

A daily candlestick close above this level would see the play-to-earn (P2E) token rise to tag the 12.3% Fibonacci retracement level at $15.39. A rise above this level would clear the path for a rise toward the $17 psychological level of higher.

AXS/USD Daily Chart

Axie Infinity Price Chart
TradingView Chart: AXS/USD

Supporting the positive outlook for the Axie Infinity price was the fact that the token sat on relatively strong support provided by the 200-day, 100-day and 50-day simple moving averages (SMAs) at $11.3, $7.9, and $7.77 respectively. Additionally, the moving average convergence divergence (MACD) indicator was moving upward above the zero line in the positive region. This was an indication that the bulls were in control of the price.

Things could go awry for Axie Infinity bulls if the price turns down from the current levels with the first line of defense emerging from the 78.6% Fibonacci retracement level at$12.6. Additional lines of defense will come from the moving averages, the $12, psychological Cleveland the 23.6% retracement area, which is a resistance turned support.

Breaching these demand zones could see the gaming token drop first toward the local low at $7.8 and later to the $6.0 psychological level, completely invalidating the bullish thesis.

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Source: https://insidebitcoins.com/news/axie-infinity-price-prediction-as-axs-explodes-56-on-homeland-news