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- Minutes after information got out that Binance would list the token, AXL’s price jumped.
- A trader made a quick $56,000 due to the price swings from the announcement.
- Open Interest reached a yearly high, as did AXL’s trading volume.
The price of the utility token of the Axelar (AXL) Web3 soared by more than 30% after news emerged that Binance would list the token. According to Binance’s statement, it planned to introduce the AXL pairs against numerous stablecoins and Bitcoin (BTC), inclusive, on March 1
However, the exchange noted that AXL withdrawals would only start on March 2. Interestingly, Spot On Chain revealed that some traders have capitalized on the development to make profits. According to the on-chain information portal, a trader exchanged 500,000 USDT to buy 317,322 AXL.
This happened around 11:30 am UTC. Minutes later, the trader sold the tokens for $556,000, making a profit of $56,000 within the said period.
This trader just made $56,028 (+11.21%) in exactly 8 minutes!He/she quickly bought 317,322 $AXL with 500K $USDT right after #Binance announced to list Axelar (AXL) at 11:30 AM on Mar-1-24 (UTC),And then sold all tokens for 556K $USDT as the price surged up to 23% afterward.… pic.twitter.com/sEP5YHn1nR— Spot On Chain (@spotonchain) March 1, 2024
However, it is important to note that the trader’s gain was not a cue to buy AXL. Currently, the announcement has made the token very volatile. Therefore, it is likely that AXL might experience high price fluctuations and unexpected price swings.
Axelar (AXL) Price Prediction for the Short Term
Coin Edition analyzed the token from a technical perspective. The Bollinger Bands (BB) on the 4-hour AXL/USDT chart confirmed the high volatility around the cryptocurrency. Furthermore, the BB indicated that AXL was overbought as the upper band touched the price of around $2.51.
Typically, this position is supposed to bring down the price. However, extreme price swings suggest that the token could move either way. In a highly bullish situation, AXL’s price could rise as high as $4. But that would require very high buying pressure.
On the other hand, selling pressure could force the price down to $1.50. Like the BB, the Relative Strength Index (RSI) also confirmed that AXL was overbought.
AXL/USDT 4-Hour Chart (Source: TradingView)
In addition, Coinglass data showed that Axelar’s Open Interest hit $7.88 million, the first time it had done that this year. The increase in Open Interest suggests that traders in the derivatives market were opening more positions linked to the token.
If the Open Interest continues to rise alongside AXL’s price, the value might climb higher. But a decrease in Open Interest could foreshadow a price decrease.
For the unfamiliar, Axelar is a Web3 inter-scale interoperability platform that aims to scale the next generation of internet users. Beyond the price increase, AXL’s trading volume also surged to mind-blowing levels, indicating high interest in the cryptocurrency.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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