Monat: Januar 2023

• Axie Infinity’s token has jumped to the highest point since November.

• Over 3.8 million of AXS tokens will be unlocked on Monday.

• The number of monthly active players has slumped.

Cryptocurrency prices have had a strong start of the year. Bitcoin price surged to above $23,000 during the weekend, the highest point in months. AXS, Axie Infinity’s main token, has risen by over 40% in the past 24 hours, according to Binance. This makes it the second-best-performing cryptocurrency after SNM, which has risen by over 127% in the same period. 

Avoid this AXS rally

There are reasons to avoid this rally. First, like in stocks, it is always important for you to do your due diligence before you invest in an asset. A quick due diligence shows that this rally is not supported by fundamentals. 

First, a closer look at its tokenomics shows that there are about 4.8 million AXS tokens that will be unlocked on Monday. These tokens are valued at over $65 million. This is notable because token unlocks are usually bearish catalysts since they increase the amount of coins in circulation. 32% of total AXS tokens are currently locked.

As such, analysts believe that the team could make an announcement ahead of the release to act as a counter-balance to the move.

Second, Axie Infinity is only valuable if the number of users in the ecosystem are using it. For example, in the stock market, you would only invest in companies that are at least generating revenue. Unfortunately, Axie Infinity’s ecosystem is in trouble, with the number of players in a downward trend.

Data collected by ActivePlayer shows that the number of monthly users has crashed to the lowest level in years. The average number of players in the past 30 days was 432k, lower than its all-time high of over 2.7 million. 

Therefore, the AXS recovery should be taken with a grain of salt since the fundamentals are not supportive of it.

AXS price prediction

AXS/USD chart by TradingView

Axie Infinity’s token formed a double-bottom pattern at $5.92 between November and December. It managed to move above the upper side of the double bottom’s neckline at $10.23. Another bullish thing is that the coin’s daily volume has risen in the past 2 days. Therefore, despite these bullish moves, I believe that AXS token price will likely resume the bearish trend and retest the support at $10.23.

Of course, traders could push an asset much higher for no reason. If this happens, the key resistance level to watch will be at $16.

How to buy Axie Infinity

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy AXS with eToro today Disclaimer

Bitstamp

Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies. Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.

Buy AXS with Bitstamp today

The post Axie Infinity’s AXS price is surging: Is this a bull trap? appeared first on CoinJournal.

Bitcoin traded above $68k in November 2021 in what seemed to be a massive squeeze higher. But the enthusiasm quickly faded. 

In a little more than one year, hodlers saw their patience put to the test. The leading cryptocurrency fell back to earth, trading below $20k and triggering massive liquidations in many parts of the cryptocurrency industry. 

Plenty of factors have contributed to the “crypto winter” we’ve seen lately, such as the ongoing dollar’s strength as a result of the Fed’s tightening cycle. Yet, the Fed’s policy and the dollar’s strength might support Bitcoin’s recovery in the months ahead. 

BTC/USD weakness was too extreme

The Federal Reserve, like other major central banks in the world, raised the interest rates to fight inflation. So naturally, the US dollar strengthened as the tightening cycle was one (still is) of the steepest ever. 

The dollar gained across the FX dashboard – and against cryptocurrencies too. However, a simple comparison between the DXY gains and the BTC/USD weakness shows that Bitcoin’s weakness was too extreme. 

BTCUSD chart by TradingView

The daily chart above shows both the DXY and the BTC/USD exchange rate and how the two performed in a little more than 13 months. While the DXY gained about 20%, the BTC/USD exchange rate dropped more than 75% from its 2021 highs. 

Therefore,  the current bounce might be just the start of a stronger move higher for the BTC/USD exchange rate. In other words, the exchange rate has a lot of room to catch up with the dollar index. 

Deteriorating US outlook

While the Federal Reserve will still hike at its upcoming meeting, the US outlook is deteriorating fast. At this pace, one might expect a recession in the year’s second half and, thus a reverse in the Fed’s policy. 

A deteriorating outlook for the world’s largest economy would spell trouble for the US dollar. Given the BTC/USD reaction to a strong DXY, then the exchange rate might rally even more as the dollar index corrects. 

All in all, Bitcoin looks well-positioned to take advantage of the upcoming dollar weakness. The more the DXY falls from its highs, the stronger the BTC/USD rally will be. 

The post 2 reasons to buy Bitcoin at current levels appeared first on CoinJournal.