Axie Infinity: Assessing AXS's 30% Pullback Risk Despite Strong Trading Volume

Axie Infinity's AXS token has shown impressive performance in the GameFi sector, gaining 10.79% over the last week. However, there are signals of a potential pullback despite the rising trading volume. This article explores the factors influencing AXS's price and what investors should consider moving forward.

Key Takeaways

AXS token has surged 10.79% but previously faced a 15% decline.
The Relative Strength Index (RSI) crossed the neutral mark for the first time in a year, a positive signal.
Despite strong volume, AXS has not yet surpassed the $2.92 resistance level, suggesting a likely pullback.
Investors might consider waiting for a price movement above $2.92-$3 before making new purchases.

The Axie Infinity weekly trading volume signaled strength, but the breakout is delayed

Analyzing Axie Infinity's Recent Market Trends

Axie Infinity’s AXS token has emerged as one of the leading assets in the GameFi ecosystem. According to CoinMarketCap, it recorded a commendable 10.79% increase over the past week. However, it also encountered a 15% decline from its $3 price point since Saturday. Recent observations by AMBCrypto indicate that the token has recovered from all its losses accrued since September 2025. Nonetheless, a potential pullback looms, as momentum indicators appear to be overextended despite robust investor interest.

The decrease from $3 confirms that a retracement may be on the horizon. The key question is: how far will this drop extend?

Key Indicator: RSI Movements for Axie Infinity

Axie Infinity Weekly

The weekly chart presents a mixed picture. While the recent surge in trading volume bodes well, indicating strong market activity, it has not yet led to a decisive shift favoring buyers. The On-Balance Volume (OBV) is climbing to levels not seen since 2024, which is encouraging. Additionally, the weekly RSI has crossed the neutral line at 50 for the first time since late December 2024, a sign of growing bullish sentiment.

However, the $2.92 swing high from July 2024 remains unbroken on the weekly chart. Given the current price action, it seems unlikely that AXS will close the week above the $2.92 mark. This situation raises the possibility of a pullback, especially with Bitcoin trading below the $90,000 threshold. Therefore, potential investors may want to wait for a price movement exceeding the $2.92-$3 range before committing to new purchases.

Potential Pullback for AXS: What to Expect

Axie Infinity 1-day Chart

On the daily chart, AXS retains a bullish structure, but the RSI is indicating a bearish divergence. The daily session has failed to close above $2.92, contributing to a rapid price decline. Fibonacci retracement levels based on recent price movements suggest an immediate target at $1.878.

Guidance for Traders: Patience is Key

The ongoing retracement may present scalping opportunities for short sellers. For those engaged in swing trading, a price retracement into the $1.238-$1.878 range is vital for assessing future moves. After observing the price reactions of AXS, traders can make informed decisions based on volume and overall market sentiment.

Conclusion

Disclaimer: The insights provided in this article are for informational purposes only and do not constitute financial, investment, or trading advice. Always perform your own research before making any investment decisions.