Axie Infinity’s AXS Token: Why 10% Sunday Rally Masks Underlying Risks

AXS pumps 10% in a single Sunday session—but don't break out the champagne just yet.

Behind the Green Candles

That double-digit surge smells more like a dead cat bounce than a genuine reversal. Retail traders chasing pumps, institutional players quietly dumping—classic crypto theater.

Structural Weaknesses Exposed

Axie Infinity's play-to-earn model shows fatigue. User growth stagnates, tokenomics look increasingly inflationary, and let's be real—the whole 'gaming' narrative hinges on speculative momentum rather than actual utility.

Market Realities

Even a 10% pop doesn't erase weeks of downward pressure. Resistance levels loom overhead like a guillotine, and volume remains suspiciously thin—typical of a bull trap sucking in late buyers.

Finance professionals see this pattern daily: assets pumping on hopium while fundamentals decay. Another reminder that in crypto, sometimes the brightest green candles are just exit liquidity in disguise.

Key Takeaways

A surge in trading volume for popular altcoins on South Korean exchanges on Sunday contributed to the 10% rally in Axie Infinity’s price. However, at the time of writing, it appeared unlikely that this rally WOULD continue.

Axie Infinity [AXS] saw a tremendous spike in daily trading volume on Sunday, 31 August. This was explained by the surge in trading volume for many popular altcoins, including the likes of ethereum [ETH] and XRP, on South Korean exchanges like Upbit and Bithumb.

In fact, AXS saw $423 million in daily trading volume on 31 August. This was an almost 15x increase on the average trading volume of around $30 million the previous week.

Volume surge not enough for AXS to establish an uptrend

Source: AXS/USDT on TradingView

Since April, Axie Infinity has traded within a range that has extended from $2.1 to $3.42. Marked in purple, the mid-point of this range was at $2.76. During Sunday’s price surge, AXS gained by 10% to close the day’s trading at $2.52.

Earlier in the day, the rally climbed to as high as $2.8, but the bears forced the buyers to retreat from the mid-range resistance. This was a sign that Axie Infinity would now trend towards the $2.1 support zone in the coming days.

The A/D indicator has slumped over the past few days too, reflecting seller dominance. Despite the flurry of buying on Sunday, the A/D indicator’s course did not shift bullishly.

The Awesome Oscillator made a bullish crossover above the zero line, underlining a momentum shift. Traders should be wary of this signal. The $2.51, $2.65, and $2.77 resistance levels appeared to be the local obstacles for AXS at press time.

A rally beyond these hurdles would require bullish conviction and steady buying pressure. Thanks to the market-wide bearishness, an AXS rally might be difficult in the coming days.

Source: Coinglass

Finally, the 1-month liquidation heatmap highlighted that the $2.4 area was a short-term liquidity cluster that could halt the bearish momentum. However, it was sparsely populated, compared to the magnetic zone at $2.1-$2.2.

The range formation and the liquidation heatmap revealed that buying AXS in this demand zone would be viable.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion