A top crypto trader is warning Ethereum (ETH)-based gaming altcoin Axie Infinity (AXS) holders of a possible crash.
It is very possible to see AXS price drop in the next days as vesting periods lapse and Axie Infinity Gamecoin holders can start converting their paper profits into real cash. The corresponding sell-off in AXS is likely to temporarily push the price down – as much as 65% according to the author below. We would take that number with a grain of salt for now, but we certainly expect to see downward pressure on the price in the next week.
While that may sound like bad news, it can also be an opportunity for strategic investors to pickup the coin at discounted prices temporarily, or larger gains in the coming months! Have a read below for more information and details from the original article.
Axie Infinity AXS Price Crash October, 2022
Pseudonymous analyst Altcoin Sherpa warns his 184,700 Twitter followers that the non-fungible token (NFT) gaming platform’s altcoin could decline more than 65% in price due to unlocks when investors can sell a digital asset after a vesting period expires.
According to the TokenUnlocks app, nearly 8% of the total token supply, or 21.5 million AXS, is set to unlock in three days.
“$3 Axie seems likely given all of the unlocks. If you’re in this, be careful.”
At time of writing, AXS is trading hands at $9.15.
Altcoin Sherpa next turns his sights on Bitcoin’s (BTC) latest price action dipping below the $19,000 price level, saying the price resistance may not hold up.
“Why are many 2018 people scared of this price action? Because it reminds us of the $6000 floor. Bounces get weaker and weaker, like dropping a rubber ball on the ground. The first test is the best test and then responses get weaker and weaker.”
At time of writing, Bitcoin is changing hands at $19,157.
He also correlates Bitcoin’s price with the new layer-1 crypto altcoin project Aptos (APT), pointing out how technical analysis isn’t useful with new coins.
“Current trading range; lows around $6.80 are next if Bitcoin continues to dump…
[Technical analysis] not really valuable here on a newly listed coin but it still has a lot of volume and volatility. Probably going to pull back around $7.60 in my opinion. Still thinking this one moves hard if Bitcoin is stable.”
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