Axie Infinity's native token, AXS, recently emerged as a top performer within the GameFi sector, posting impressive gains that effectively erased all losses incurred since September 2025. This significant rally, which saw AXS surge nearly 225% in just over three weeks, has now given way to a crucial retracement, leaving investors and traders to meticulously assess its next move.
AXS's Remarkable Ascent and Early Warning Signs
The recent bullish momentum for AXS was undeniable, marked by robust investor participation and extremely high weekly trading volume that propelled its On-Balance Volume (OBV) to highs not seen since 2024. A pivotal technical indicator, the weekly Relative Strength Index (RSI), also crossed above the neutral 50 level for the first time since late December 2024, signaling a significant shift in market sentiment. Despite these strong indicators, AXS faced a critical challenge: its inability to breach the $2.92 swing high from July 2024 on the weekly timeframe. This failure, coupled with an apparent overextension in momentum indicators, foreshadowed the current pullback from the $3 mark.
Navigating the Retracement: Key Levels and Trader Strategies
The ongoing retracement is further confirmed by technical signals on the daily timeframe, including a bearish divergence in the daily RSI and the inability to achieve a daily close above $2.92. This has triggered a rapid pullback, with initial Fibonacci retracement levels pointing to $1.878 as an immediate price target. For swing traders, a deeper retracement into the $1.238-$1.878 range is anticipated, offering potential entry opportunities. Investors looking to buy into AXS are advised to exercise caution and await a decisive move beyond the $2.92-$3.0 resistance zone. Observing future price reactions, trading volume, and broader market sentiment will be crucial for making informed decisions as AXS navigates this post-rally consolidation phase.
