Smooth Love Potion (SLP) price began its downtrend in November, with the token’s value pulled down by the collapse of Sam Bankman-Fried’s crypto empire FTX. The token lost 112% in value from a high of $0.00407 on November 10 to a low of $00.195 on January 8.
The $0.00195 level pivoted the SLP price, marking the bulls’ resurgence into the market. From this level, the token has ascended almost 80%, recovering most of the losses made toward the end of 2022. At the time of writing, the token was trading at $0.003325, up 9.13% on the day. Smooth Love Potion’s market cap was up 9.1% to $140.34 million, positioning the SLP token at #191 on CoinMarketCap.
Investors were highly active in the SLP market, recording a trading volume of $89.33 million. This was an astonishing 459% increase in 24 hours.
Why Is SLP Token Price Rising?
Smooth Love Potion token price is closely affiliated with Axie Infinity, a metaverse blockchain where gamers can play games and earn in the process. The SLP token is earned when a competitor in the Axie Infinity game wins.
Players in the Axie Infinity guild collect, breed, raise, battle, and trade non-fungible tokens (NFTs) based creations dubbed ‘Axies’. The players earn SLP tokens as rewards, and the Smooth Love Potion tokens can then be redeemed to breed new “Axie” creations. Nevertheless, SLP tokens are not the same as AXS tokens, the native crypto that facilitates transactions within the Axie Infinity ecosystem.
The recent surge in SLP price revolves around the news of the reduction of SLP token supply by Axie Infinity developers. Notably, 250 million SLP tokens are burnt monthly since September.
3.2% of the total $SLP supply has been burnt since Sept 2022, 250M #SLP is being burnt /month🔥@AxieInfinity users need to burn SLP to craft & crafting is critical for a good #AxieInfinity lineup
Expect SLP supply to continue decreasing & if demand also increases price will 📈 pic.twitter.com/DGpwnkh5d5
— RoninBull (@RoninBul) February 25, 2023
With Axie Infinity developers burning the token, they make Smooth Love Potion scarce. This strategy is part of the greater implementation of change targeted at rebalancing the ecosystem.
Many of the sites aren’t live for $SlP supply
Use this link and select the sat range for when SLP launched, do the math on burnt/minted tokens and you’ll get a live supply of SLP https://t.co/QqTm3pGk5w
— RoninBull (@RoninBul) February 26, 2023
The supply of SLP is always changing. When deflationary, it can technically fall to zero. A deflationary supply, however, with utility in the game, will result in consistent price appreciation from current levels over time.
Citing one of the developers, “Many play and enjoy the game. An increasing SLP price would also bring tons of users into Axie again. Much more to earn while playing then.”
Will SLP Price Break Past The Technical Formation?
At the time of writing, the SLP price was trading at $0.003325 after weeks of trading within a bullish ascending parallel chart pattern. As long as the price moves within this bracket, its value is bound to increase.
The price faced immediate resistance at $0.0035 as bulls pushed to record more gains. An increase in buying momentum past this roadblock could set the price up for a breakout. A daily candlestick close above the midline of the technical formation at $0.0036 would be a good sign.
Beyond that, bulls would be looking for a push to the upper boundary of the ascending parallel channel at $0.004, marking a 20.51% increase from current levels. Nevertheless, the SLP market would remain bullish for as long as the price moved within the ascending channel, and investors would be looking at more gains.
SLP/USDT Daily Chart
SLP price was sitting on solid support downward due to the 200-day Simple Moving Average (SMA) at $0.003117, embraced by the lower boundary of the ascending channel. The price was also supported by the 50-day and 100-day SMAs at $0.002984 and $0.002662 levels respectively. These were critical breathing zones where bulls could replenish their momentum as the northward journey continued.
The moving average convergence divergence (MACD) was still above the mean line, and the histograms were still green. These showed that buyers still populated the Smooth Love Potion market. If the price sustained above the lower trendline, the 50-day, and 200-day SMA would soon call a positive signal that could provoke another bull run.
On the downside, if profit-takers continued booking early profits, selling pressure could send the SLP price below the lower trendline of the governing chart pattern. Below this level, the price would be exposed to a free fall that could see investors record massive losses, potentially resuming the yearly lows of $0.002.
Notice the relative strength index (RSI) moving downwards to show buyers fleeing the scene. The price strength at 55 was also wanting, showing signs of a potential drop.
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