beincrypto.com
After starting the week negatively, the Axie Infinity (AXS) price has rebounded 7%, briefly reclaiming the $6 milestone on Thursday. On-chain analysis reveals the critical data points that could generate bullish momentum in the coming days.
After the recent $20 million token unlock in late July, AXS’s price retraced 28% from $6.50 to $5.60 between July 24 and August 7. On-chain data shows that the bearish sell-off is now cooling off. But can AXS build on its 7% price bounce this week by clearing the crucial $6 resistance?
AXS Long-Term Holders Have Stopped Selling
Flush with funds from the July 22 token unlock, many Axie Infinity long-term holders booked profits over the last two weeks. Quite expectedly, the sell-off frenzy sent AXS price spiraling toward $5.50.
However, on-chain data indicates that the momentum has flipped this week. The Santiment chart below shows that AXS Mean Coin Age has started trending upward again.
After a noticeable blip last week, AXS Mean Coin Age has now increased by 28% between August 6 and August 11.
Mean Coin Age gauges the long-term investors’ trading sentiment by computing the average number of days that coins in circulation have spent in their current wallet addresses.
When Mean Coin Age increases, as seen above, it indicates that investors hold their tokens longer, presumable to score larger gains before selling.
Considering that the next Axie Infinity token unlock event is 70 days away, AXS holders could have fewer incentives to sell in the coming days.
Crypto investing, simplified. Get AXS price predictions here.
Axie Infinity Whale Investors Have Been Buying the Dip
While Axie Infinity’s price retraced after the token unlocks, whale investors have been scooping the dip. According to data from Santiment, whales holding balances of 100,000 to 1 million AXS tokens AXS had started buying around July 26.
Between July 26 and August 11, this whale cluster added 1.51 million AXS tokens to their wallet balances.
With AXS price currently sitting at $5.98, this means the whales have injected a fresh investment of $9 million within two weeks. Notably, the timing of the accumulation frenzy suggests the whales strategically took advantage of the token unlock sell-off.
In summary, the growing confidence among AXS long-term holders and whale investors will likely generate bullish momentum.
AXS Price Prediction: Bullish Momentum Could Push Price to $7
The In/Out of Money (IOMAP) data shows the key support and resistance levels within the 20% boundaries around the current price. Currently, it shows $6.20 territory is the major resistance that could prevent AXS from hitting the $7 price target.
As depicted below, 926 holders had bought 20.9 million tokens at the maximum price of $6.17. If Axie Infinity price can scale this supply wall, it has a realistic chance of reclaiming $7.
Still, the bears could regain control if the AXS price falls below $5.50 once again. But, the 295 holders of 156,040 tokens at the average price of $5.61 could offer some support.
Nevertheless, if that support level gives way, AXS could retest $5.
Read More: Best Crypto Sign-Up Bonuses in 2023