Axie Infinity Gains 14% – AXS Faces Crucial $2 Test Ahead

As the previous week concluded, gaming tokens maintained a positive momentum. However, many of these tokens have struggled to keep pace within the last 24 hours.

Key Takeaways:

Axie Infinity (AXS) has surged by 14%, exhibiting strong performance compared to its peers.
The game token sector is currently the strongest among altcoins.
AXS faces crucial resistance at the $2 mark, with conflicting market signals complicating the outlook.
Holder numbers for Axie Infinity have dropped significantly, indicating profit-taking by investors.

Axie Infinity Gains 14% – AXS Faces Crucial $2 Test Ahead

Axie Infinity (AXS) is leading the charge among major tokens, recording impressive gains of 14%. This increase marks a significant rally, with AXS soaring nearly 113% last week. Out of the top ten tokens by market capitalization, only three other assets, The Sandbox (SAND) and Decentraland (MANA), saw positive returns, climbing 6% and 5% respectively, while the rest faced losses.

This surge appears to be a result of capital shifting into gaming tokens, which have emerged as the strongest sector among altcoins lately. The key question remains: will AXS bulls be able to maintain this upward trend?

Bears Challenge the Strength of Bulls

Current charts indicate that AXS is on an upward trajectory after breaking through the previous consolidation phase below $1. Following this breakout, AXS experienced a surge that has now paused around the critical resistance level of $2.

This pause has led to a resurgence of bearish activity. The Moving Average Convergence Divergence (MACD) indicator is currently red, although its strength appears to be waning, suggesting that bulls are slowly regaining control following a recovery that started at $1.6.

AXS Source: TradingView

The On Balance Volume (OBV), exceeding $90 million, indicates a significant driving force behind this recovery. For AXS to continue its upward momentum, it must secure a victory over bearish forces at the $2 resistance level, which will be pivotal for its next movements.

Mixed Signals From Transactions

Etherscan reports over 2,600 transactions occurring in a single day, providing insight into why AXS has outperformed many of its competitors during this period.

Source: Etherscan

Despite this high transaction volume, the sentiment is mixed—84% bullish and 16% bearish. Some wallets show withdrawals from exchanges, while others are making deposits. For example, one wallet transferred over $40,000 worth of AXS to Bybit, while another withdrew $16,900 from Binance.

Additionally, inter-exchange token movements were noted, such as Coinbase transferring $5,000 to Binance and OKX moving $1,300 to Gate.io.

Source: Etherscan

Addresses making withdrawals indicate confidence in an upward trend, whereas those depositing may be looking to take profits. This lack of consensus on direction reflects uncertainty in market sentiment.

Decline in Axie Infinity Holders

Recent data reveals a significant drop in Axie Infinity holders, with a decrease of over 1,500 in just one week, leaving the total at 166,720 as of the latest update. This shift suggests that holders are cashing in on the recent rally.

Source: CoinMarketCap

This trend could hinder Axie Infinity's chances to break above the $2 barrier. However, if the bulls can overpower the bears and the gaming sector continues to flourish, AXS may still have the potential to surpass the $2 mark.

Conclusion

In summary, Axie Infinity is currently experiencing significant market activity, with potential for further gains if bullish momentum can be sustained. The mixed signals from transactions and a decline in holders present challenges, but there remains optimism among AXS supporters to overcome resistance and achieve higher price levels.