• Axie Infinity price could be ready for a massive explosion early next week.
  • The network will unlock over 18 million tokens, worth over $175 million on April 23.
  • AXS is up 20% since the March low of $6.88, and could rally 25% ahead of the event.

Axie Infinity price (AXS) has wobbled ahead of the upcoming token unlock event scheduled for April 23, causing the token to drop by a significant margin while it gives traders a chance to buy the dip. Standing among the top players in the GameFi and non-fungible token (NFT) spaces, Axie Infinity allows platform users to play games and be rewarded for their achievements. Notably, player rewards come in the form of the Smooth Love Potion (SLP) token and sometimes even AXS tokens.

Axie Infinity token unlock event

The Axie Infinity token unlock event scheduled for April 23 is among the top news in the crypto scene this week and next week, with data showing that the network’s developers will unleash more than 18 million AXS tokens. Based on current rates, this translates to at least $175 million. This represents about 7% of its total market capitalization, based on CoinMarketCap data.

Notably, this is not the first time Axie Infinity is unlocking tokens, as the network runs on a schedule that shows all the tokens will be unlocked by 2025. Noteworthy, the total locked supply of AXS tokens is around 29%, according to the latest data.  

More often than not, token unlocks have a bearish impact on cryptocurrency assets because they cause dilution in the market. To put this in perspective, CoinMarketCap data shows that the circulating supply of Axie Infinity tokens is around 116 million, with a market capitalization of around $957.6 million.

By unleashing new tokens to the market, Axie Infinity will be diluting the quantity of AXS held by existing holders. This is concerning and explains why the likes of dYdX put off its token unlock worth around $150 million earlier in the year.

Nevertheless, some tokens tend to soar in price following dilutive events, although not in every instance. For example, Ethereum price (ETH), currently at $1,944 after the network completed its Shanghai/Capella (Shapella) upgrade on April 12, marked an uptick of about 10% in a month.

The event opened the gates for anyone to withdraw their staked Ethereum (stETH) tokens.

Axie Infinity price eyes 25% gains ahead of the token unlock

Axie Infinity price of $8.21 at the time of writing appears to be coiling up for a breakout. Investors should probably buy AXS at current rates in to avoid missing the train once the rally begins. If buyer momentum increases, the gaming token could ascend toward the 50- and 100-day Exponential Moving Averages (EMA) at $8.78 and $9.01 respectively.

Breaking above these levels could clear the path for more gains, setting Axie Infinity price up for a 25% rally to $10.10. In highly bullish cases, AXS could tag the 200-day EMA at $11.16 or in extreme cases, the $11.73 resistance level.

The uptick for Axie Infinity price would be possible especially if traders play into the 'buy the rumor sell the news’ narrative.

AXS/USDT 1-day chart

On the flipside, if sellers overpower the bulls, Axie Infinity price could head lower, potentially tagging the $7.78 support level. A break below this base could invalidate the bullish thesis. In highly bearish cases, AXS could extend a leg down to the psychological $6.85, or worse, tag the $5.98 support floor. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP