$60 Million Coin Unlocked In This Altcoin But Its Price Is Rallying!

Today cryptocurrency following the world Axie Infinity (AXS) 1.8 million AXS, or approximately 60 million dollars of tokens, were unlocked as of 16:00 in the token.

Interestingly, however, there was a serious increase in the price of AXS altcoin on the day of the token unlock.

Under normal circumstances, such token unlocks are considered a bearish development as investors tend to sell their coins.

Analysts Investigate Reasons for Rise in Axie Infinity Despite Unlocking Altcoins

Tokens are locked to prevent major investors, who are often initial investors or even team members of the project, from selling their coins out of the blue and causing price drops.

Weekly chart showing altcoin price surge after unlocked AXS tokens.

According to Felix Hartmann, managing partner at crypto investment firm Hartmann Capital, this confusing rally stems from hopes the Axie team will announce positive news to counter the downside impact of the token unlock:

“Over the past 12 months, crypto teams have started to have a history of saving big announcements for unlock days. This has happened so consistently that people are now expecting a bullish catalyst for unlocking.”

Substack publisher Unlocks Calendar recently made a similar observation:

“As there is positive momentum in the market, the teams that will be unlocked will unveil the good news they’ve been hiding for months while the market was stagnant. The goal should be to capitalize on positive market movements to push the price up just before unlocking.”

*Not investment advice.

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