A top crypto trader is warning Ethereum (ETH)-based gaming altcoin Axie Infinity (AXS) holders of a possible crash.
Pseudonymous analyst Altcoin Sherpa warns his 184,700 Twitter followers that the non-fungible token (NFT) gaming platform’s altcoin could decline more than 65% in price due to unlocks when investors can sell a digital asset after a vesting period expires.
According to the TokenUnlocks app, nearly 8% of the total token supply, or 21.5 million AXS, is set to unlock in three days.
“$3 Axie seems likely given all of the unlocks. If you’re in this, be careful.”
At time of writing, AXS is trading hands at $9.15.
Altcoin Sherpa next turns his sights on Bitcoin’s (BTC) latest price action dipping below the $19,000 price level, saying the price resistance may not hold up.
“Why are many 2018 people scared of this price action? Because it reminds us of the $6000 floor. Bounces get weaker and weaker, like dropping a rubber ball on the ground. The first test is the best test and then responses get weaker and weaker.”
At time of writing, Bitcoin is changing hands at $19,157.
He also correlates Bitcoin’s price with the new layer-1 crypto altcoin project Aptos (APT), pointing out how technical analysis isn’t useful with new coins.
“Current trading range; lows around $6.80 are next if Bitcoin continues to dump…
[Technical analysis] not really valuable here on a newly listed coin but it still has a lot of volume and volatility. Probably going to pull back around $7.60 in my opinion. Still thinking this one moves hard if Bitcoin is stable.”
At time of writing, APT is changing hands at $7.46.
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