Axie Infinity’s token AXS recovered from a deep crash with the announcement of two upcoming bAXS airdrops. The excitement of the airdrop prevented the AXS price from crashing below the $1 psychological level and held its developing uptrend intact.
100,000 AXS to be airdropped
Axie Infinity, a token that powers in-game rewards, secondary marketplace transactions, and Axie evolutions, launched a new token, Bonded AXS (bAXS). Axie Infinity developed this new token, as the AXS will become a reserve currency, and bAXS will take over the AXS token’s role.
The token will be introduced with a couple of airdrops. During the first airdrop, 100,000 bAXS tokens will be distributed to wallets that have staked at least 10 AXS.
To be eligible for the bAXS airdrop, users were required to have at least 10 AXS staked in their wallets before the snapshot on February 5th at 00:01 UTC. Thereafter, the project will automatically check the blockchain at that time.
And those who meet the eligibility criteria will be rewarded an amount of bAXS depending on how much AXS the users have staked and the Axie Score. The airdrop tokens will be sent to eligible wallets when bAXS officially launches, with the exact date to be announced.
With the excitement of the airdrop, the AXS prices, which were crashing hard, started to recover. Not only did the AXS price recover, but the airdrop also saved the prices from losing their bullish trend, as shown in the chart below.
AXS tests 50-day moving average but fails to break above
With the added benefit of the airdrop, AXS tested the 50-day moving average but was not able to push past it. By looking at the Relative Strength Index (RSI) indicator, it seems like a recovery is happening undercover.
The RSI line, which was heading downwards towards the oversold territory, has changed its direction and is moving upwards towards the RSI-SMA line. If the RSI line crosses above its SMA, it shows that prices are performing above the current market’s par value.
Although the date of the airdrop is not mentioned, AXS prices might retrace a bit as traders sell their airdropped tokens. However, let’s not forget about the second airdrop, which could give the AXS prices another boost.
