Axie Infinity (AXS) price jumps past $2 amid renewed GameFi investor interest. On-chain data shows rising exchange balances and declining holders. $2 remains a key support, with volatility and profit-taking signalling a looming pullback risk.

Axie Infinity (AXS) has staged an impressive comeback, surging past the $2 mark in the latest rally.

The token’s recovery has captured the attention of GameFi enthusiasts and investors alike.

This rebound comes amid a broader resurgence in the gaming and decentralised finance sector.

Over the past week, Axie Infinity (AXS) has jumped nearly 92%, highlighting renewed investor interest.

Today, in just 24 hours, the token rose by 19%, with its price currently at $2.406. This surge represents a strong rebound from the $1.06 low recorded earlier this week.

Furthermore, AXS’s market capitalisation now stands at $407 million, supported by over $1 billion in daily trading volume.

Such activity underscores the high liquidity and demand driving the current rally.

The rally is partly fueled by renewed optimism in the GameFi space.

Investors are increasingly attracted to projects like Axie Infinity that combine gaming with blockchain incentives.

South Korean traders, in particular, have contributed significantly to the token’s resurgence, trading AXS at a premium on major exchanges.

Additionally, the project’s development of the bAXS token has provided further momentum by promising new staking and ecosystem benefits.

Despite the bullish momentum, several on-chain indicators suggest caution.

The number of AXS holders has declined sharply in the past week, signalling profit-taking among investors.

Exchange balances have also risen slightly, indicating potential selling pressure that could slow or reverse gains.

Meanwhile, weekly active addresses on the Ronin network remain below 10,000, showing that user growth has yet to fully recover.

Futures open interest for AXS has reached $130 million, the highest in three years, highlighting elevated speculative activity and liquidation risk.

Furthermore, the transaction flow data presents a mixed picture.

Some investors are withdrawing AXS from exchanges, signalling bullish sentiment.

Others are depositing tokens back onto exchanges, suggesting caution or potential profit-taking.

These conflicting signals emphasise that while the short-term rally is strong, market dynamics remain fragile.

Looking ahead, $2 serves as a critical support level for Axie Infinity.

A sustained move above this point could pave the way for further gains in the short term.

However, the declining holder count and high speculative activity suggest that volatility may persist.

Investors should monitor both trading volume and on-chain metrics to gauge market sentiment.

Long-term growth for Axie Infinity (AXS) will likely depend on revitalising user engagement and expanding its GameFi ecosystem.

Despite the impressive rebound, caution is warranted as the token navigates this critical phase.

The post Axie Infinity surges past $2 as GameFi market revives, but caution looms appeared first on CoinJournal.

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