Axie Infinity (AXS) Price Surge: Is Liquidity Shifting to GameFi?

Axie Infinity’s token, AXS, experienced a significant price increase recently, surging nearly 45%. This rally has brought attention back to the GameFi sector, outpacing many mid-cap altcoins. Unlike previous spikes with lower trading volumes, this surge appears to be backed by robust trading activity and growing market interest.

Analyzing AXS Price Surge

Currently trading around $1.29, AXS has risen approximately 33% within the past 24 hours. This increase reflects a marked improvement in trading volume, which has reached nearly $380 million. The overall market cap stands at about $217 million, indicating increased investor engagement.

Factors Driving the Rise

• Market Volatility: The return of investor appetite for high-volatility sectors like GameFi has fueled the price surge. This sector often experiences dramatic rebounds when buyers re-enter.
• Futures Market Activity: Futures trading volume exceeds $526 million, with around $1.5 million in liquidations and open interest near $44.6 million, signaling short covering and new positions.
• Staking Adjustments: Recent changes in Axie’s staking program and the introduction of new incentives, including an upcoming Axie Score rewards experiment scheduled for January 2026, have positively influenced market sentiment.

Future Outlook for Axie Infinity (AXS)

After breaking out from multi-month lows, AXS is currently trading close to $1.31, marking a weekly increase of nearly 37%. This resurgence occurs as the token navigates a crucial testing point, where market dynamics will determine whether this uptick indicates a genuine trend reversal or merely a fleeting bounce.

Technical Analysis

On its weekly chart, AXS has maintained a descending channel pattern, with recent price movements showing higher lows. A significant rebound from the channel’s lower boundary has lifted the price above the $1.20–$1.30 zone. Indicators such as Bollinger Bands are tightening, suggesting an impending increase in market volatility. Meanwhile, the Relative Strength Index (RSI) is improving, affirming bullish momentum.

Price Targets and Risks

If AXS maintains its position above the $1.10-$1.20 range, potential targets could reach $1.50-$1.60 initially, followed by $1.75-$2.00. However, falling below $1.10 may lead to a retest of $0.90.

Conclusion

AXS has shown renewed strength after a prolonged decline, but it remains in a critical phase. Strong buying activity may attract further interest, establishing a more substantial recovery. However, if the price drops significantly, the recent surge could be viewed as a temporary reaction rather than a sustainable upward trend. The upcoming sessions will be pivotal in determining whether this movement is a true comeback or a momentary spike.