- Axie Infinity's AXS surged by over 20% in 24 hours even as tokens were unlocked.
- Smooth Love Potion's SLP also surged in correlation with AXS.
AXS and SLP prices jumped sharply on Monday even as concerns about Axie Infinity remained. The AXS crypto price soared by 20% in the past 24 hours and surged to the highest level in November. Smooth Love Potion, on the other hand, has jumped by 114% from its lowest level in December and is hovering near its December highs.
Axie Infinity challenges remain
AXS and SLP are the two tokens for the Axie Infinity ecosystem. For starters, Axie Infinity is one of the oldest platform in the gaming industry. Users play games in the ecosystem and then are rewarded using the Smooth Love Potion token. At times winners are rewarded using the AXS token.
A key challenge for Axie Infinity is that the level of interest in the ecosystem has waned in the past few months. This interest declined as people started moving back from working from home into the office. At the same time, the collapse of AXS and SLP saw more people exit the industry.
As a result, recent data shows that the average number of users in the ecosystem has crashed from over 2.7 million at its peak to about 432k. While these are more users than those of Decentraland, the trend is not encouraging.
AXS price has jumped even as tokens worth over $63 million are unlocked. In most cases, unlocking tokens is usually seen as a bearish thing since it leads to dilution in the market. The percentage of locked AXS tokens locked is about 32%. The next unlock event will happen in the next 83 days.
A likely reason why the AXS price is rising is that the number of shorts being liquidated has been rising. Data by CoinGlass shows that liquidations have been increasing this year. On Sunday, they increased to the highest point since December 5.
It is worth noting that longs have also been liquidating their positions recently. Similarly, the number of SLP long liquidations has soared to the highest level since November.
SLP price prediction
In this part, we will do a Smooth Love Potion price analysis. The theory is that the two tends to have a close correlation. On the 1D chart, we see that the coin formed a small inverted head and shoulders (H&S) pattern. It has also moved above the 50-day and 50-day moving averages. Bullish volume has risen albeit slightly.
Therefore, the outlook is that SLP and AXS pulls back in the coming days as the current momentum wanes. SLP will likely retest the support at $0.0024 while Axie Infinity’s AXS will retest the support at $10.
