Axie Infinity Token (AXS) Increases By 40% - Know What's Pumping Price?
2022-02-08 | Big Bob
In three days, the value of the Axie Infinity
(AXS) token has increased by approximately 40%. As Axie Infinity presented a redesigned incentive system for its player-vs-player (PVP
) tournament phase, AXS surged to over $65, its highest level in over two weeks.
The play-to-earn company increased the number of ranking spaces to 300,000 and increased the number of Axie Infinity incentives to 117,676 from 3,000 for the upcoming season.
AXS demand increases as the economy improves.
The Axie Infinity protocol uses AXS as a control token. It also serves as legal cash for the purchase of in-game nonfungible tokens (NFTs
) – more or less distinct digital pets known as "Axies" — through the Axie marketplace. Lastly, gamers may utilize AXS to create new Axies from current ones.
However, Axie Infinity has a dual-token structure. Smooth Love Potions (SLP), the other cryptocurrency
, was given to players for accomplishing daily objectives as well as passing levels in the adventure mode. Furthermore, SLP awards were earned via area battling in the Axie Infinity game.
Axie Infinity also removed the daily mission as well as adventure mode, which meant that gamers could only gain SLP tokens through area battle. The action is expected to lower the daily supply of SLP tokens by 56%.
This is critical since players must burn SLPs in order for old Axies to produce fresh ones. The Axie Infinity team has just introduced a new SLP to reward people that have burnt through breeding.
As a consequence, Axie Infinity eliminated paths that generated more SLPs. The researchers observed that, while the daily quest motivated individuals to participate every day, it also imposed a 45 million SLP supply strain to the Axie Infinity economy.
Merely said, the Season 20 change will make SLP scarcer, possibly increasing the value of Axies. As a result, in an "ideal" world, Axie Infinity would acquire popularity amongst gamers and cryptocurrency fans alike, thereby increasing demand for its AXS coin.
That helps to understand why the AXS price increased by more than 40% following Axie Infinity's statement on February 3rd.
Technicals of the AXS pricing
The most recent phase of purchasing in the AXS market
has caused its price to regain as support a significant short-term resistance level.
On Sunday, the price of AXS rose beyond its 200-4H exponential moving average (200-4H EMA). Subsequent retests of a similar level have occurred in tandem with an uptick in selling mood. As a result, recovering it as support increased AXS's ability to continue its rally.
As per the Fibonacci retracement chart constructed from AXS's swing high around $140 to its swing low of approximately $45, the $68 level will be the next upward target. Nevertheless, a strong rise over the mentioned level may prompt AXS to go for $80 next.
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