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Axie Infinity (AXS) and Smooth Love Potion (SLP) have become fallen angels as their prices have collapsed recently. SLP, the thinly traded token, was trading at $0.0014 on Tuesday, over 90% below its all-time high. Similarly, AXS was trading at $4.30, 70% below the highest point this year.
Axie Infinity token unlock
Axie Infinity was one of the biggest players in the crypto gaming industry. At its peak during the Covid-19 pandemic, the ecosystem had millions of users from around the world. These users love playing with the Axies and receiving the rewards.
Recently, however, most of those people have gone back to work and school. Many have given up on crypto after going through a prolonged winter. Most importantly, many Axie Infinity users who won AXS and SLP tokens have seen their value evaporate.
The number of active Axie Infinity users has dropped in the past few months. Data compiled by DappRadar shows that the total number users in the ecosystem crashed by more than 24% in the past 30 days to 56k. These users handled volume worth over $953k.
Looking ahead, the key catalyst for Axie Infinity is the upcoming token unlock worth over $65 million. Data compiled by TokenUnlocks shows that these tokens represents over 11% of the total coins in the ecosystem.
Axie Infinity has already unlocked 181.4 million tokens or 67% of the total supply. There are now over 64 million tokens left to be unlocked. The unlock schedule will end in September 2026, meaning that holders should be prepared for more dilution.
The new tokens will be distributed to the team, advisors, play to earn, ecosystem fund, and staking rewards. This unlock will happen on Friday this week.
Axie Infinity price forecast
AXS chart by TradingView
The daily chart shows that AXS token has been in a strong bearish trend in the past few months. Most recently, it has moved sideways below the key resistance level at $5. It has also dropped below the key support at $4.50, the lowest level in June.
AXS price has also moved below the descending trendline shown in blue and the 25-day and 50-day moving averages. Therefore, the Axie Infinity price will likely remain in a downtrend as demand for the token eases and supply rises. If this happens, the token will likely drop below the support at $4.0.
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