SLP, Some Fundamental Thinking on Axie's FutureSLP being a utility for a Metaverse game is a double edged sword.
Being it's mainly a reward function (as of now), I don't believe TA will have much influence here.
It will be the fundamentals that will drive direction, determined by the underlying game it's tied to.
Bullish Points
At any point, Axie could implement new mechanics and functions that bring demand back into SLP. They've already done so in a small way my limiting distribution according to MMR. The upcoming Axie Land update will be something to keep a close eye on as well.
Maybe they add an in game shop with NFT's or something. Maybe they allow skill reroll or trait mutations by using SLP to do so. Maybe Axie simply adjusts the cost to breed. There are a couple of economic levers they can pull to adjust SLP demand.
Bearish Points
Axie keeps SLP functions as is, allowing SLP to continue to mainly act as one piece of an off ramp to get paid for playing. This limited use case will continue to drive sell pressure IMO.
I understand its also used for breeding, but it's obvious that the demand from breeding isn't enough to affect price as it currently sits.
Axie incorporates another coin to drive game functions off of, further driving SLP stagnation.
Axie further stagnates, and people start to deem it no longer worth their time to play. People begin to cash out in an attempt to hold some form of value.
In Closing
IMO This coin will live or die on Axie's patches, updates and adjustments, not on TA.
Keep an eye on big updates like the upcoming Axie Land. It sounds like a lot new functions will be added, and I'm curious how many of these functions will be driven by SLP.
Could be an opportunity to get in cheap, or lose another 90+%. It's a real gamble unless you have an ear in on the dev team.
Not financial advice, just mad ramblings.
