Axie Infinity up 14% – AXS faces decisive $2 test next

ambcryptoPublished on 2026-01-20Last updated on 2026-01-20

Abstract

Axie Infinity (AXS) leads gaming tokens with a 14% daily gain, continuing the bullish momentum from the previous week. However, the broader gaming sector shows mixed performance, with only SAND and MANA also posting gains among the top 10 tokens. AXS faces a critical resistance test at the $2 level after breaking out from a consolidation phase below $1. Technical indicators like the MACD show weakening bearish pressure, while the On Balance Volume suggests strong buying interest. On-chain data reveals mixed sentiment, with some addresses depositing (potentially profit-taking) and others withdrawing (indicating bullish belief). A sharp decline in holders could challenge further upside, but a break above $2 remains possible if bullish momentum continues.

Gaming tokens were still maintaining the bullish momentum that started as the previous week came to a close. However, most of them have not sustained this trend in the past 24 hours.

Axie Infinity is leading all the top-capped tokens with double-digit gains of 14%. This rally was within the 113% range of last week.

Only three of them have managed positive returns among the top 10 in terms of capitalization. The Sandbox [SAND] and Decentraland [MANA] recorded 6% and 5%, respectively, while the others were in red.

The rally follows capital rotation into gaming tokens. They have been the strongest sector among all altcoins over the past week. Will AXS bulls sustain the trend?

AXS bears testing bulls’ strength

The chart showed that AXS was in an uptrend after breaking out of the sideways consolidation below $1. The breakout was followed by a surge that was paused around the higher high of $2.

The pause came as bears kicked in. As such, the MACD was red, though the strength was diminishing after bulls countered the pullback.

This signal showed sellers were being taken out gradually after recovery was initiated at $1.6.

Meanwhile, the On Balance Volume (OBV) of over $90 million explained what drove the recovery. However, bulls needed to beat bears at the $2 zone, which was the decision area for the next move.

Transactions show mixed signals

The network activity on Etherscan showed that there were over 2,600 transactions on the day. This indicated why AXS had outperformed its peers during the day.

However, this on-chain activity was mixed in sentiment despite the gauge being 84% bullish and 16% bearish. There were addresses that were withdrawing from exchanges, and at the same time, there were those depositing.

For instance, a wallet deposited over $40K AXS to Bybit. Another wallet withdrew $16.9K worth of AXS from Binance.

Furthermore, there was inter-exchange token movement. For instance, Coinbase moved $5K to Binance, while OKX moved $1.3K to the Gate.io exchange.

The withdrawing addresses showed belief in a continued uptrend, while those depositing were potentially taking profit. The balance in the two activities showed there was no consensus in direction bias.

Axie Infinity holders dip sharply

The number of Axie Infinity holders dropped sharply, with over 1.5K lost in a week, at 166.72K at press time. This meant that they were taking profit from the aforementioned rally.

Such an outcome could derail Axie Infinity’s potential to break past $2. However, if bulls beat bears and gaming tokens continue thriving, AXS may breach $2.

Final Thoughts

  • AXS rallies 14%, leading all the gaming tokens in terms of daily gains.
  • AXS price faces a key test at $2, with holders declining sharply.

Related Questions

QWhat is the current price movement of Axie Infinity (AXS) and what key level is it testing?

AAxie Infinity (AXS) is up 14% and is currently testing the key resistance level of $2.

QWhich other gaming tokens, besides AXS, recorded positive returns among the top 10 by market cap?

ABesides AXS, The Sandbox (SAND) recorded a 6% gain and Decentraland (MANA) recorded a 5% gain.

QWhat on-chain metric, with a value of over $90 million, is cited as a driver for the AXS price recovery?

AThe On Balance Volume (OBV) of over $90 million is cited as a driver for the AXS price recovery.

QWhat does the sharp decline in the number of Axie Infinity holders suggest about investor behavior?

AThe sharp decline of over 1,500 holders suggests that investors are taking profits from the recent price rally.

QAccording to the network activity on Etherscan, what was the mixed sentiment among AXS traders?

AThe mixed sentiment was shown by some addresses depositing AXS to exchanges to take profits, while others were withdrawing AXS from exchanges, indicating a belief in a continued uptrend.

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