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Axie Infinity (AXS) price failed to reclaim the $5 level despite the positive sentiment surrounding the altcoin markets at the end of September. Historical on-chain data may provide insights into how AXS price could perform in the coming weeks.
Unlocking of AXS Tokens!
Axie Infinity is set to unlock its next token on October 20th. According to a recent report, Axie Infinity is expected to have the largest crypto token unlocking event in October 2023. The highly anticipated event could result in the circulation of 15.13 million AXS, equivalent to $69 million.
The shared chart indicates that they currently hold a total of 34.66 million AXS in their wallets as of October 2nd. However, just 3 days later, they are down to 34.2 million tokens. This suggests that they may have sold approximately 460,000 AXS tokens worth around $2.07 million this week. It reflects a similar downward trend observed during the previous token unlocking event on July 22nd, 2023.
The chart shows that whales sold 1.85 million AXS between July 5th and July 21st. Despite the crypto market rally following Ripple‘s (XRP) victory, AXS price has still decreased by 26% within the 30 days following July.
The upcoming unlocking event of a $70 million token is four times larger than the previous one, which is noteworthy. Therefore, other stakeholders in the Axie Infinity ecosystem may also join the downward movement in the coming weeks. The rapid closing of positions by AXS futures traders this week is seen as confirmation of the bearish outlook.
Critical Report from Analytical Company!
Derivative data analytics platform Coinalyze reported that AXS open interest was at $50.4 million on September 15th. Surprisingly, this figure has dropped by 49% to $26 million as of October 5th.
This could imply a capital outflow of $46 million from the futures markets of Axie Infinity in the past three weeks. Open interest may reflect the value of outstanding derivative contracts for an asset on recognized trading platforms. Strategic investors often interpret such a sharp decline in Open Interest as a bearish signal.
This indicates that existing AXS investors are closing their positions faster than attracting new capital. In summary, if analysts and whale investors continue to observe the historical downward trend, the price of AXS could soon decline to new lows.
