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- 1 Axie price trades at $6.41 while observing a gain of 1.75% during the intraday trading session.
- 2 AXS price has crossed the 20 and 50-day EMAs positively but faced rejection from the 100-day EMA.
- 3 The year-to-date return of Axie infinity has dropped to 6.46%.
AXS price has been in an uptrend, forming higher lows after it formed support at $4.70 and gained bullish momentum. The start of June brought a sharp price drop as the whole cryptocurrency market was suffering due to the lawsuit filed by the Securities and Exchange Commission (SEC) against some of the major cryptocurrency exchanges.
Recently, the price faced rejection from the $6.80 level and the price corrected the bullish move by retracing and forming support at $6.18. The previous candle closed as a Doji candle, indicating equal presence of bulls and bears. The current candle is bullish and is headed toward retesting the resistance level of $6.18.
However, the current candle has not broken the high of the previous candle. If bulls can push the price above $6.80, it might head toward the next resistance level of $7.25, causing a rise of roughly 6.64%.
Upcoming Axie Infinity Event
Another concern for Axie infinity is the upcoming token unlocking event. The event can potentially put an end to the bullish trend of AXS price. This week will bring a release of tokens worth $27.5 million from various crypto and DeFi firms. AXS unlocks make up the vast majority of these tokens. A total of 3.43 million are to be unlocked in four days on July 22.
This will cause an oversupply of the token in the market by 3% of the total supply. The unlock will increase the circulating supply and lead to declining demand in the market.
It is important to note that these tokens are only going toward staking and will not hit the market at the same time. During April, there was a release of 18.9 million AXS tokens which was far more extensive than this one and the price fell by 17% in the week before the event.
Will AXS Infinity Decline To $5.50?
The cryptocurrency’s price has crossed above the 20 and 50-day EMAs, indicating rising bullish momentum in the price. Traders should note that the 100-day EMA has previously acted as a resistance for the price. Chaikin money flow score is 0.07, implying strength in the market.
The relative strength index (RSI) trades at 57.45, suggesting that the price possesses bullish momentum. The long/short ratio is 1.07 with 51.77% longs and 48.23% shorts, indicating slightly higher buying pressure in the last 24 hours.
Conclusion
Technical parameters suggest that the price is in a bullish momentum but there is concern regarding the upcoming token unlocking event. The market structure and price action for Axie infinity is bullish as the price has been forming higher lows since the formation of support at the $4.70 level.
Technical levels
Major support: $6.18 and $5.50
Major resistance: $7.25 and $8.50
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
