• Axie Infinity (AXS) price jumps past $2 amid renewed GameFi investor interest.
• On-chain data shows rising exchange balances and declining holders.
• $2 remains a key support, with volatility and profit-taking signalling a looming pullback risk.

Axie Infinity (AXS) has staged an impressive comeback, surging past the $2 mark in the latest rally.

The token’s recovery has captured the attention of GameFi enthusiasts and investors alike.

This rebound comes amid a broader resurgence in the gaming and decentralised finance sector.

Strong AXS price recovery and market momentum

Over the past week, Axie Infinity (AXS) has jumped nearly 92%, highlighting renewed investor interest.

Today, in just 24 hours, the token rose by 19%, with its price currently at $2.406. This surge represents a strong rebound from the $1.06 low recorded earlier this week.

Furthermore, AXS’s market capitalisation now stands at $407 million, supported by over $1 billion in daily trading volume.

Such activity underscores the high liquidity and demand driving the current rally.

The rally is partly fueled by renewed optimism in the GameFi space.

Investors are increasingly attracted to projects like Axie Infinity that combine gaming with blockchain incentives.

South Korean traders, in particular, have contributed significantly to the token’s resurgence, trading AXS at a premium on major exchanges.

Additionally, the project’s development of the bAXS token has provided further momentum by promising new staking and ecosystem benefits.

On-chain data signals caution

Despite the bullish momentum, several on-chain indicators suggest caution.

The number of AXS holders has declined sharply in the past week, signalling profit-taking among investors.

Exchange balances have also risen slightly, indicating potential selling pressure that could slow or reverse gains.

Meanwhile, weekly active addresses on the Ronin network remain below 10,000, showing that user growth has yet to fully recover.

Futures open interest for AXS has reached $130 million, the highest in three years, highlighting elevated speculative activity and liquidation risk.

Furthermore, the transaction flow data presents a mixed picture.

Some investors are withdrawing AXS from exchanges, signalling bullish sentiment.

Others are depositing tokens back onto exchanges, suggesting caution or potential profit-taking.

These conflicting signals emphasise that while the short-term rally is strong, market dynamics remain fragile.

Axie Infinity price forecast

Looking ahead, $2 serves as a critical support level for Axie Infinity.

A sustained move above this point could pave the way for further gains in the short term.

However, the declining holder count and high speculative activity suggest that volatility may persist.

Investors should monitor both trading volume and on-chain metrics to gauge market sentiment.

Long-term growth for Axie Infinity (AXS) will likely depend on revitalising user engagement and expanding its GameFi ecosystem.

Despite the impressive rebound, caution is warranted as the token navigates this critical phase.

The post Axie Infinity surges past $2 as GameFi market revives, but caution looms appeared first on CoinJournal.

• Axie Infinity price jumped 13% to near $1.30 as bulls extended gains to over 30% this past week.
• Top gaming ecosystem tokens, including Gala and The Sandbox continue to lag broader market.
• AXS price could rally to $2.25 if momentum from the four-year low holds.

The Axie Infinity token has bounced more than 13% in the past 24 hours amid a notable recovery from recent losses that pushed AXS to lows last seen in 2021.

As renewed investor interest allows bulls to bounce off a four-year low, the technical picture points to a potential upside continuation.

Sentiment across crypto, with several altcoins attempting reversals after extended periods of pressure, may add to bulls’ advantage.

Axie Infinity outpaces other gaming tokens

Market data  during early US hours on January 16, 2025 showed Axie Infinity price hovering around $1.23. However, buying pressure had the token trading at highs of $1.30, not far off the weekly resistance level around $1.35 reached on Jan. 14.

In late December, Axie Infinity fell to $0.78, the lowest mark since the breakout from $0.73 to highs of $1.18 in January 2021.

The token has surged by over 30% in the past week, with a revisit to the $1.00 level before another bounce reflecting fresh buying momentum.

A look at the gaming tokens ecosystem, CoinMarketCap data shows AXS to be outpacing peers in the past 24 hours and week.

Immutable, Gala, Floki, The Sandbox, Decentraland and MultiversX are all struggling. Can Axie Infinity continue to buck the trend?

Axie Infinity price forecast

While AXS is not fully out of the woods following its severe drawdown since it peaked at $165, the bounce from under $1 may test bears’ resolve.

Positive developments within the Axie Infinity ecosystem, including economic adjustments and upcoming gameplay enhancements, might combine with overall market sentiment to bolster upward price action.

For instance, Axie Infinity has introduced an App Token (bAXS), which means that instead of AXS, holders can now hold bAXS.

This token can be staked or spent directly in Axie Core. Analysts say the launch of bAXS is a major step for Axie Infinity, and adoption will benefit AXS.

From a technical perspective, the daily chart shows the Relative Strength Index (RSI) at 66.

This indicates that bulls have room to extend gains before entering the overbought territory.

Meanwhile, the Moving Average Convergence Divergence (MACD) recently marked a bullish crossover and features an expanding histogram.

If key support holds at $1.20, the next hurdle may be around $1.50 and $2.25.

On the downside, breaking below the psychological support level will encourage sellers, potentially allowing for another multi-year low.

The post Axie Infinity price extends above $1.20 amid reversal from 4-year low appeared first on CoinJournal.