Altcoin Axie Infinity (AXS) price is up 33% compared to last month. However, the upcoming token unlock is giving bearish signals. With the token unlocking for stake rewards, the AXS Average Coin Age has been on a steady rise in recent weeks. So how will all this affect the price? Let’s look at the details.
Altcoin Axie Infinity (AXS) token unlocks
Altcoin Axie Infinity has faced renewed market demand in recent weeks. However, according to data from the Token Unlocks App, Axie Infinity will unlock 3.63 million tokens on June 22. The numerical equivalent is $22 million. Notably, Axie Infinity experienced a price correction until the previous unlock event in April 2023. However, given that the upcoming unlock program is dedicated to rewarding holders who stake their tokens, AXS has instead witnessed a 33% price increase this month.
This is up to Axie Infinity investors who stake and hold their tokens to participate in the rewards. Since the beginning of July, the Axie Infinity Average Coin Age has been rising steadily. The chart above shows how it increased by 40% from 28.9 to 44.2 between 1 July and 19 July.
Average age of coins
Average Coin Age evaluates changes in the average time investors have held their tokens by dividing the total age of coins by the total circulating supply. This steady increase in the AXS Average Coin Age indicates a network-wide bullish wave of accumulation. It turns out that altcoin AXS holders want to stake their tokens to receive greater rewards during the upcoming token unlock.
However, things will take a completely different turn once the token unlock is complete. On-chain data shows that despite the continued 33% price increase, some altcoin AXS investors are starting to put up selling pressure. As seen below, crypto investors have put up for sale 792,000 AXS tokens. Meanwhile, buyers placed active orders for only 600,000 tokens.
Currently, AXS supply is currently outpacing demand at 192,000 tokens. Investors will want to cash out their rewards. Therefore, token unlocking will worsen market saturation. On the other hand, if long-term holders want to make some profit after the Axie Infinity token unlock on June 22, it will effectively lower the price of altcoin AXS.
AXS price prediction: $5 support is critical
Given the on-chain indicators described above, altcoin AXS will likely make one final move to reclaim $6. However, after unlocking the token, AXS will pull back towards $4.50. However, the bears must first scale the critical support level at $5. In this region, 3,290 investors purchased 3.67 million AXS tokens at an average price of $5.43. They can build a buy wall to close their long positions.
However, what if holders continue to sell their token rewards? AXS could inevitably pull back towards $4.50. Still, if AXS price rises above $8 before Token Unlock, there is a good chance the bulls will take control of the market. However, this is highly unlikely. Because 7,830 investors who bought 123.4 million AXS at an average price of $ 7.11 will slow down the rally. However, if they can reverse the $7 resistance, AXS will move higher towards $8.
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