Axie Infinity price surges after breaking 11-month resistance! Will AXS price shine now?
Unexpectedly, gamefi tokens like Axie Infinity are experiencing significant surges today after the AXS price broke through months of resistance levels. As the market shows signs of recovery and Bitcoin aims to break above $45,000, AXS price is gaining momentum, trading in parallel with Bitcoin. Nonetheless, concerns are growing about the possibility of a sharp correction from recent highs, as loss-making holders grow increasingly impatient.
Axie Infinity faces $2.4 million short-term liquidation
A significant number of sellers liquidated their holdings after the AXS price rose from a low of $6.5 to a high of $12.5. Data from Coinglass shows short position holders liquidating approximately $2.4 million in positions as price movements contradicted their bearish forecasts.
Current analysis suggests that the AXS price is likely to undergo a significant correction soon as loss-making holders become increasingly impatient. Data from IntoTheBlock shows that profitable addresses have now increased to 28.6%.
Nonetheless, the number of addresses losing money still outnumbers those making profits, with around 51,000 holders in the red. In such a situation, a continued upward trend in AXS price may tempt losing holders to exit the market to minimize losses.
Such a scenario could potentially trigger a long squeeze, where even the slightest correction could force holders holding long positions to liquidate their holdings, sending the price chart down sharply.
The AXS token saw a 30% price increase without any major news or events from the company to explain it. Axie Infinity’s social media updates have been minimal. This price increase is likely due to growing interest in gaming and metaverse-related cryptocurrencies among traders.
What’s next for AXS pricing?
The value of AXS rebounded to $7.6 at the 20-day exponential moving average (EMA) and surged to $12.5 on Coinbase, reflecting strong buying activity from bullish investors. At the time of writing, AXS is trading at $10.14, a surge of over 26.1% since yesterday.
AXS price may face resistance near $13, but a sustained upward trend is still likely if bullish traders maintain their positions without a significant pullback. It could rise to $21 if buyers push the price above $14.
The Relative Strength Index (RSI) indicates overbought conditions. This suggests that the current rally may be excessively extended in the short term and may decline slightly or enter a plateau. The initial support level is set at EMA20. A drop below this level could weaken the bullish momentum. In this case, the AXS price may consolidate within $4-$6.