Axie Infinity’s AXS price is surging: Is this a bull trap?

  • Axie Infinity’s token has jumped to the highest point since November.

  • Over 3.8 million of AXS tokens will be unlocked on Monday.

  • The number of monthly active players has slumped.

Cryptocurrency prices have had a strong start of the year. Bitcoin price surged to above $23,000 during the weekend, the highest point in months. AXS, Axie Infinity’s main token, has risen by over 40% in the past 24 hours, according to Binance. This makes it the second-best-performing cryptocurrency after SNM, which has risen by over 127% in the same period. 

Avoid this AXS rally

There are reasons to avoid this rally. First, like in stocks, it is always important for you to do your due diligence before you invest in an asset. A quick due diligence shows that this rally is not supported by fundamentals. 

First, a closer look at its tokenomics shows that there are about 4.8 million AXS tokens that will be unlocked on Monday. These tokens are valued at over $65 million. This is notable because token unlocks are usually bearish catalysts since they increase the amount of coins in circulation. 32% of total AXS tokens are currently locked.

As such, analysts believe that the team could make an announcement ahead of the release to act as a counter-balance to the move.

Second, Axie Infinity is only valuable if the number of users in the ecosystem are using it. For example, in the stock market, you would only invest in companies that are at least generating revenue. Unfortunately, Axie Infinity’s ecosystem is in trouble, with the number of players in a downward trend.

Data collected by ActivePlayer shows that the number of monthly users has crashed to the lowest level in years. The average number of players in the past 30 days was 432k, lower than its all-time high of over 2.7 million. 

Therefore, the AXS recovery should be taken with a grain of salt since the fundamentals are not supportive of it.

AXS price prediction

AXS/USD chart by TradingView

Axie Infinity’s token formed a double-bottom pattern at $5.92 between November and December. It managed to move above the upper side of the double bottom’s neckline at $10.23. Another bullish thing is that the coin’s daily volume has risen in the past 2 days. Therefore, despite these bullish moves, I believe that AXS token price will likely resume the bearish trend and retest the support at $10.23.

Of course, traders could push an asset much higher for no reason. If this happens, the key resistance level to watch will be at $16.

How to buy Axie Infinity

 

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy AXS with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy AXS with OKX today

All Dutch and English crypto news!

Abra settles with fifth state as US operations may be winding down

The platform was part of a targeted campaign by state regulators and promised to stop U.S retail operations last summer. News Own this piece of crypto history Collect...

Ethereum futures open interest at all-time high — Bullish or bearish?

Ethereum futures open reached a new all-time high, calling into question whether ETH can rally to $3,800. Market Analysis Own this piece of crypto history Collect this article...

Bitwise files with SEC for spot Ether ETF listing

The SEC approved investment vehicles tied to Ether futures in October but has not reached a decision about spot ETH exchange-traded funds on U.S. exchanges. News Own...

Web3 ad service Everyworld reaches 225K users within a month of launching beta

The service is currently available in beta for select markets. News Own this piece of crypto history Collect this article as NFT Join us on social networks Web 3 advertising...

Beste exchanges

Koop je crypto bij Bitvavo