AXS Eyes Breakout After 39% Rally — Key Levels Traders Should Watch
Axie Infinity’s native token AXS surged 39% in 24 hours and about 93% since the start of 2026, leading gaming tokens by volume after three consecutive days above $100M and a daily volume spike to $326M (CoinMarketCap). The rally pushed AXS toward the upper resistance of a multi-month descending channel formed after a four‑year low in December. A decisive break and hold above $1.50 could target roughly $4.70 (over 200% upside), while failure to break may extend the downtrend. Liquidity clusters sit mainly between $1.30–$1.60, with many concentrated above $1.50; recent gains were partly driven by a short squeeze clearing sell orders above price. Supply-side changes may support bulls: Axie cut daily emissions ~90% by disabling SLP rewards in Origin mode, and the community approved staking 9 million ETH from the treasury, signalling stronger institutional-style backing. Key takeaway for traders: watch $1.50 as the pivotal level — a confirmed breakout implies large upside potential, while rejection risks a retracement toward liquidity below the channel.
Bullish
The article presents multiple bullish drivers: a rapid price surge (39% in 24h, ~93% YTD), heavy trading volume ($326M daily), reduced token emissions (~90% cut to SLP rewards) and a community-approved treasury move to stake 9M ETH — all of which tighten supply and increase on-chain confidence. Technically, AXS is testing the upper boundary of a long-term descending channel; a confirmed breakout above $1.50 would likely trigger momentum buying and target ~ $4.70, representing significant upside. The mention of a short squeeze explains the recent sharp move, which can amplify short-term volatility but also remove overhead selling, setting the stage for continuation if momentum holds. Risks remain: rejection at the channel resistance or the $1.50 level could lead to a retracement toward liquidity clusters below, and the long-term downtrend is not yet invalidated until a sustained breakout occurs. Historical parallels include other gaming/token rallies that accelerated after emission cuts or treasury/strategic staking actions — these tended to be bullish once supply reduction and on-chain commitments were confirmed. For traders: short-term—expect elevated volatility and potential gap up on breakout; use $1.50 as a pivot with tight risk management. Long-term—if supply remains constrained and adoption continues, structural bullish case improves; failure to reclaim the channel would keep medium-term downside risk intact.