Axie Infinity (AXS) Surges 50% in a Day... Why?

▲ Axie Infinity (AXS)/Source: X

Axie Infinity surged by nearly 50% in a single day as funds rapidly flowed into game tokens, but signs of overheating are also growing simultaneously.

According to CoinMarketCap, a cryptocurrency market data aggregator, on April 25 (local time), Axie Infinity (AXS) rose by 48.75% over 24 hours to record $1.66, significantly outperforming the overall market, which remained in bearish territory. This surge is analyzed to be largely influenced by capital rotation into altcoins and the gaming sector rather than individual positive news.

Recently, as Bitcoin's momentum slowed, speculative funds have been rapidly shifting to high-risk, high-volatility altcoins. Strong upward trends have been particularly observed in game tokens and meme coins, and Axie Infinity has emerged as a major beneficiary of this trend.

Technical trends were also strong. Trading volume surged by 2,755% to $563 million, and the price significantly surpassed the 7-day simple moving average of $1.49 and the 30-day simple moving average of $1.21, confirming a short-term upward trend. However, the fact that the Relative Strength Index (RSI) soared to 96.86, entering an extremely overbought zone, is a concern.

The short-term pivot point is $1.59. If this price is supported, the next target is set at $1.93. Conversely, if it falls below $1.59, a quick correction to around $1.50 could occur as the overheating subsides.

Ultimately, Axie Infinity's current trend is a phase where strong buying pressure and a high risk of retracement coexist. While there is still room for further upside if the capital rotation into the gaming sector continues, it is also necessary to prepare for profit-taking pressure given the significant short-term surge.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*