Axie Infinity (AXS) Rallies 15% After $1.20 Bounce — Dead Cat Bounce Risk Persists
Axie Infinity (AXS) spiked over 15% in 24 hours after bouncing off the $1.20 support level, driven by a 250% surge in trading volume and renewed trader interest following Sky Mavis’s bAXS rollout announcement. The rally pushed AXS above $1.56 and moved the token closer to the top 100 by market cap. Technicals show a potential falling-wedge breakout on the 4-hour chart, with RSI and MACD suggesting room for further gains. However, broader market sentiment remains fragile despite Bitcoin holding above $70,000 and fresh institutional buying. Analysts warn the move could be a dead cat bounce: a decisive failure to close above $1.60 or a breakdown below $1.20 could accelerate downside toward prior accumulation near $0.80. Conversely, a sustained close above $1.60 would invalidate the short-term bearish setup and open a path toward horizontal resistance near $3.00. Key metrics: +15% price change, ~250% volume increase, critical levels $1.20 (support), $1.60 (near-term resistance), $3.00 (higher resistance), downside target $0.80.
Neutral
The immediate effect is bullish: AXS recorded a >15% price rise with a 250% jump in volume and positive technical signals on the 4-hour chart, supported by the bAXS rollout news. These factors can attract short-term momentum traders and speculative buying. However, market-wide sentiment is still fragile despite Bitcoin stability and institutional buys, which limits conviction. The key near-term threshold is $1.60 — a sustained close above it would increase bullish odds toward $3.00, while failure to hold $1.20 would likely confirm a dead cat bounce and push AXS toward $0.80. Historically, small-cap gaming tokens often show sharp, volume-driven bounces on product/airdrop news that reverse if macro sentiment weakens (similar episodes occurred during previous airdrop-driven rallies in 2021–2022). Therefore the net impact is neutral: short-term upside potential exists but significant downside risk remains without a clear break of resistance or broader market confirmation.