Axie Infinity (AXS) has captured the attention of traders and cryptocurrency enthusiasts after a stunning 39% price hike within 24 hours. As one of the leading Web3 gaming tokens in the market, AXS has gained over 50% this week alone, bringing its total growth since the start of the year to an impressive 93%. What does this mean for traders and investors, and is this the time to bet on AXS?
Market Performance and Trading Volume
The rally in AXS has been nothing short of remarkable, with the token recording a massive trading volume spike of 190% in just three days. According to CoinMarketCap, the volume climbed to $326 million, reflecting its dominance over other gaming tokens. This increase in activity indicates heightened interest from both bulls and bears, with significant implications for its future trajectory.
Technical Analysis: AXS at a Crossroads
Currently, AXS’s price is approaching the upper resistance of a multi-month descending channel. This trendline has acted as a barrier for months, trapping the token within a downward spiral. However, the ongoing rally suggests a potential breakout above the $1.50 level, which could pave the way for a rally of over 200%, pushing prices to around $4.70. For traders, this is a critical level to monitor as it could determine whether the bullish momentum continues.
It’s worth noting, however, that bears may retaliate if the price fails to break out. The possibility of a trend reversal could see AXS continuing its downtrend. Liquidity clusters, concentrated between $1.30 and $1.60, highlight both interest and caution from the market. Interestingly, the short squeeze that contributed to its recent rally could also lead to a retracement if sell orders below $1.50 are triggered.
Fundamental Factors: Supply Crunch and Community Confidence
Axie Infinity’s development team recently made a key move by disabling Smooth Love Potion (SLP) rewards in their Origin mode, effectively slashing daily token emissions by 90%. This dramatic reduction in circulating supply puts the token in a prime position for a potential supply crunch, which could drive prices higher.
Meanwhile, the Axie community has shown unwavering confidence in the project by voting to stake 9 million Ethereum (ETH) in its treasury. This institutional-grade move reinforces the long-term vision of Axie Infinity and enhances its appeal as a reliable Web3 gaming investment.
Why Web3 Gaming Is Gaining Momentum
As gaming continues to shift toward decentralized platforms, investments in Web3 gaming tokens like AXS are becoming increasingly popular. Axie Infinity’s success epitomizes the growing synergy between blockchain technology and the gaming industry. For interested users, exploring Axie Infinity’s ecosystem, including its unique Play-to-Earn (P2E) features, could prove rewarding.
Where to Buy AXS
To capitalize on the potential breakout, traders can buy AXS on major cryptocurrency exchanges such as Binance or Coinbase. If you’re a new investor, tools like the Ledger Nano X hardware wallet can provide a secure way to store your digital assets.
Final Thoughts
With its reduced token supply, increasing demand, and strong community support, Axie Infinity is positioned for a significant price movement in the coming months. However, traders should remain cautious, watching for signs of resistance or retracement. As always, do thorough research and consult financial experts before making any trading decisions in the volatile crypto market.
