AXS Whipsaws Hard: Bulls Stampede 23%, Bears Cash Out for a 12% Siesta 🐂💤

Axie Infinity [AXS] endured a volatile 48-hour stretch, surging 23.13% to $1.16 before sellers pushed the token back down by 12.3% to $1.03 at press time. The token's market capitalization swung from a 23.05% gain worth $201.94 million into the subsequent pullback. Trading volume remained elevated across both sessions, rising 630.63% to $127.54 million during the rally before settling at $71.34 million during the correction, a 67.3% increase over the prior 24 hours.

Derivatives activity expanded sharply during the upside move. Open Interest climbed 91.02% to $38.64 million, reflecting a substantial influx of capital into futures markets as AXS approached the $1.25 resistance zone. The rally developed after buyers defended support near $0.882 and broke AXS above a descending channel that had guided the downtrend throughout June. Technical indicators, including a bullish MACD crossover and a Parabolic SAR flip below price, aligned with the channel breakout.

On-chain data pointed to reduced selling pressure despite the price decline. Exchange reserves fell 29.27% to 8.473 million tokens during the broader advance and continued sliding by 5.93% to approximately $8.61 million during the pullback, according to CryptoQuant analytics. Lower reserves indicate that tokens have moved away from trading platforms toward private custody. Spot market participants also remained active, with the Spot Taker CVD staying buyer-dominant and showing that market buy orders continued to outweigh sell orders across the observed period.

After pulling back, AXS revisited the former upper boundary of its broken descending channel, a zone that now serves as a retest of newly established support. Buyers still face the challenge of absorbing supply from traders who secured profits during the rally. Sustained spot demand combined with shrinking exchange balances could provide a supportive backdrop if price action stabilizes above current levels.