Popular analyst @ali_charts highlighted the growing potential of the Axie Infinity ($AXS) token. He recently did the analysis and concluded that 98.67% of $AXS holders are currently “Out of the Money.”
This revelation has stirred quite a buzz in the crypto community.
Will Axie Infinity rally?
He suggested that Axie Infinity is poised for a significant rally. The conclusion is based in the fact that a vast majority of $AXS holders find themselves in a position where the current market price is below their buying cost.
This typically indicates a some investor desperation and the potential price surge. He also observed that a crucial support level has formed around $4.
Reactions from the community
One user responded humorously. He claimed that there will be skepticism among some investors who remain cautious about the $AXS token’s prospects. It is important to consider that crypto markets are highly volatile, and investor sentiment can shift rapidly.
$4 is still about $4 too high for this 😆
@Lateralus_11235
Another user raises a valid question, asking, “Wouldn’t they sell then as soon as it bounces a bit?” This question is a common concern among investors: whether those “Out of the Money” will take the opportunity to sell their holdings once the price increases. This could be a resistance against a good price rally.
Whats happening with Axie Infinity?
Axie Infinity has become very popular in the world of blockchain-based gaming and non-fungible tokens (NFTs). Their ecosystem is designed around a play-to-earn model. It allows users to earn cryptocurrency by participating in the game.
The formation of a support level and the presence of a large percentage of “Out of the Money” investors indicates price increase. However, it’s important to note that cryptomarkets may not follow common technical analysis rules.
Nevertheless, investor sentiment remains mixed, as demonstrated by reactions from skeptics and those questioning the sustainability of a price bounce.