Derivative Crypto Traders Are Cynical About the Axie Infinity (AXS) Token Rally
Following the rise in the price of the AXS token, which can be termed a positive break from the over a year low of the token, crypto traders who are specialised in derivatives have begun to warn people and be sceptical whether the token’s current situation will remain so for long.
Things Are Not As They Seem
Crypto traders who particularly work with derivatives have taken to the public to warn the community about the AXS token. According to them, they are quite unsure whether the recent price rise of the token will be sustainable.
Recently, it appears that quite a great deal of cryptocurrencies that are based on virtual reality, as well as non-fungible tokens (NFT), have witnessed a surge. And as a result of that, the AXS token rose from its consistent low to a considerably higher turnaround. The token had been like that for over a year.
Considering the recent development, it appears to most traders ordinarily that the token is bound to move to a higher price; hence, most have gone on to make a long entry decision to benefit when it eventually happens.
However, certain traders are unsure whether the current rise in price will be sustainable. They pinned their reasoning on the fact that while the value of the futures that are tied to the token runs to about $129.70 million in US dollars, there is no corresponding movement in regards of the funding rate as it becomes quite evident that perpetual prices are way lower than the pegged mark price.
According to them, the situation translates to the fact that the short positions taken are employed by the longs, which is so because they maintain their positions and keep them open, resulting in the potential risk of falling to the bearish side.
According to Griffin Ardern, a trader who specialises in volatility trading, the situation is so dire because a large percentage of the traders seem to think that the token is bound to return to its former state.
Axie Infinity Is About To Delve Into Decentralisation
The online game company recently made a public announcement that it would be making arrangements to employ a decentralised tool. The strategy will work in such a way that members of its community will be able to participate in making decisions for the community.
It appears that the resultant effects of the announcement were a rise in the price of the token, such that about 22% of a price gain has been recorded as of the time of writing this piece.
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