The cryptocurrency market witnessed a notable surge as Axie Infinity (AXS) rallied by 14%, emerging as a leader among gaming tokens. This strong momentum was driven by capital rotation into gaming-focused altcoins, with Axie Infinity remaining a standout performer in its category.
AXS Price Analysis: Can Bulls Break the $2 Barrier?
After a prolonged phase of sideways consolidation below $1, AXS entered a definitive uptrend, breaching significant resistance levels. However, the rally hit a pause near the $2 mark, as bears began to show resistance. While the Moving Average Convergence Divergence (MACD) indicator turned red, signaling a pullback, the diminishing strength of this downward movement showed that bulls were still actively countering.
One of the pivotal factors for this surge was the increased On Balance Volume (OBV), which registered over $90 million. This indicates strong buying interest and highlights a potential bullish continuation if the $2 resistance level is decisively broken. On-chain activity further supports this possibility, with over 2,600 transactions recorded in a single day, according to Etherscan data.
On-Chain Insights: Mixed Sentiment Among Holders
While the sentiment score for AXS remained 84% bullish versus 16% bearish, transactional data revealed varying approaches from investors. Some wallets showed faith in AXS’ continued rally by withdrawing significant holdings from exchanges, while others opted to deposit AXS, potentially locking in profits after the recent surge.
For instance, one wallet deposited over $40,000 worth of AXS to Bybit, while another withdrew $16,900 from Binance. Moreover, inter-exchange token transactions, such as Coinbase moving $5,000 to Binance and OKX sending $1,300 to Gate.io, highlight active token flow across platforms. Despite such mixed actions, the overall activity points to robust engagement within the Axie Infinity ecosystem.
What Lies Ahead for AXS?
The current rally could face challenges as the number of Axie Infinity holders experienced a steep drop of over 1,500 within a week, potentially signaling profit-taking behavior among investors. With the holder count at approximately 166,720, market sentiment may remain uncertain in the short term. However, should gaming tokens sustain their ongoing growth momentum, AXS could outperform once again and breach its critical $2 level.
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Conclusion
While Axie Infinity has demonstrated substantial potential amid the recent crypto market rally, its future trajectory depends on defeating the $2 resistance level. As gaming tokens continue to capture the market’s attention, AXS remains a prime candidate for further growth, provided bullish sentiment persists.
