The NFT play-to-earn game, Axie Infinity, is still taking hits as its currency known as “Axie Infinity Shards (AXS)” continues to suffer with a significant downtrend despite its anticipated launch of blockchain-based play-to-earn project tokens on Sunday. Despite the current price scenario, analysts speculate that the token might experience swift price fluctuations at the start of the next week amid the launch.
Axie Infinity (AXS) has currently wobbled along with the overall crypto market, which has resulted in a considerable dip in its value. The dip has offered investors a golden opportunity to bag the token at a lower price point. With the positive momentum of the crypto market in March, the crypto token has rallied by 20% from a low of approximately $6.88.
At the time of writing, the token has declined by another 3.29% in the last 24 hours, pulling back the trading price to $8.21. At the same time, the total market cap of the cryptocurrency is approximately $952 million.
Axie Infinity Gears Up for The Unlock Event
Cryptocurrencies tend to rally prior to a major announcement, like a network upgrade, token burns, new partnerships, or exchange listings. However, the situation seems a bit different for Axie Infinity (AXS), as it is currently trading in red and the token unlock event itself is a bearish indicator.
The Axie Infinity (AXS) token unlock event is scheduled for April 23 and it is one of the widely talked about topics in Axie’s recent past. It is expected that the developers will unleash approximately 18.89 million AXS tokens, worth $176.55 million, representing almost 7% of its market cap.
Unlocks are classified as bearish catalysts as they add more to the supply of tokens. It is a common practice for early-stage projects to lock tokens in an effort to prevent big holders from selling all of their holdings at once, which would result in a price slide.
Furthermore, this is not the first time AXS has initiated token unlocking. The network runs on a schedule that is bound to unlock all tokens by 2025. The total locked supply of the tokens is almost 29%.
Axie Infinity (AXS) – Price Expectations
Analysts believe that the mood of investors and traders will be critical for AXS and its price movement in the next week. Previously, these token-unlocking events helped in triggering a short bull run for the AXS token. If the buyer momentum sees an increase, the token might make its way toward the 50 and 100-days EMA at almost $8.78 and $9.01.
Moreover, breaking above these levels could pave the way toward higher gains, setting the stage for up to a 25% increase. In highly bullish cases, AXS could tag the 200-days EMA at almost $11.16 or $11.73 resistance level.
However, the uptick in the price would only be possible if the traders continued to play the “buy the rumor sell the news” narrative. Thus, the weekend and the start of the next week will set the tone for the token.