Axie Infinity Price Rebounds on bAXS Token Launch and Market Recovery

Axie Infinity's AXS token price surged over 30% in a week, rising from a four-year low of $0.78 to around $1.23 according to Finance Yahoo. The launch of the bAXS token is designed to improve user engagement and reduce sell pressure by curbing bot farming in the Origins game mode as reported by Finance Yahoo. This structural shift in Axie Infinity's tokenomics is expected to enhance token utility and encourage organic user growth according to Finance Yahoo.

Axie Infinity's AXS token price has rebounded over 30% in the past week, driven by the introduction of the bAXS app token, which allows holders to earn, stake, or spend within the ecosystem as detailed by AInvest. This shift is intended to stabilize the project's economic model and enhance user participation. Co-founder Jihoz described the change as a 'big swing' that reflects broader shifts in the token supply model according to AInvest.

Trading volume for AXS has surged in recent days, with a 1,600% increase in a 24-hour period as noted by AInvest. This surge coincided with a move above $1 for the first time since November and reflects renewed market participation. Technical indicators, such as the RSI and MACD, show mixed signals, with RSI at 66 indicating room for gains before reaching overbought levels and a bullish MACD crossover suggesting continued upward movement according to AInvest.

Derivatives data also shows a negative funding rate of -0.41% and a long-to-short ratio of 0.82, indicating more traders are betting on price declines as reported by AInvest. The introduction of bAXS is seen as a major catalyst, offering increased utility and flexibility within the ecosystem. This shift aims to stabilize tokenomics and improve user engagement, potentially leading to long-term gains according to AInvest. However, the mixed sentiment and technical signals suggest that caution is warranted, as the market could experience further volatility in the short term according to AInvest.

The broader GameFi market has also experienced volatility, with projects like Pixiland pausing Web3 features due to regulatory uncertainty and market challenges according to AInvest. This context adds to the uncertainty around Axie Infinity's future price action and investor sentiment. From an ecosystem perspective, the shift to bAXS is intended to improve long-term sustainability and user participation. This move reflects a broader strategy to adapt to market conditions and user needs according to AInvest. The success of this initiative will depend on how well bAXS is adopted and integrated into the Axie Infinity ecosystem according to AInvest.

If the price of AXS continues its recent momentum, it could rally to $2.25 according to AInvest. However, this will depend on key technical levels remaining intact. Traders are closely watching for a breakout above $1.50 as a signal of sustained bullish momentum. If key support levels are broken, however, the price could face renewed downward pressure and return to multi-year lows according to AInvest.

The introduction of bAXS is a significant structural change in Axie Infinity's tokenomics. Unlike AXS, bAXS is tied to user accounts and earned through gameplay, which allows holders to stake, spend, or earn within the ecosystem according to AInvest. This shift is expected to reduce sell pressure and stabilize the token economy by curbing bot farming and encouraging organic user growth. Analysts suggest that bAXS adoption will be a key factor in determining AXS's long-term price performance according to AInvest. The token's utility within the ecosystem, combined with its role in governance and staking, is intended to improve user participation and drive economic growth according to AInvest. As the token is integrated further, it could enhance the overall value proposition of Axie Infinity and support the project's ambitious 2026 roadmap according to AInvest.

Why Is Axie Infinity’s AXS Token Rising?

Axie Infinity’s AXS token price surged nearly 45% in one day, outpacing most mid-cap altcoins and rekindling interest in the GameFi sector according to TradingView. This increase was accompanied by rising volume and improved momentum, signaling broader participation. The price action has shifted from lower highs and lower lows to higher highs and higher lows, indicating potential bullish momentum according to TradingView. The rally has been supported by derivatives market activity, with futures volume and open interest rising according to TradingView.

Key reasons behind the AXS price rise include the return of risk appetite to higher-volatility sectors like GameFi according to TradingView. Derivatives markets are adding fuel, with futures volume above $526M and open interest near $44.6M. Short covering and fresh positioning have helped power the rally according to TradingView. On the narrative side, Axie's recent staking and incentive adjustments, including an Axie Score-based rewards experiment planned for January 2026, have brought the project back into focus and improved sentiment according to TradingView.

Axie Infinity's price has soared more than 37% over the last two days according to TradingView. Such a massive rally often leads to a short-term price correction. If AXS continues its price pullback, it could extend the decline toward the 50-day Exponential Moving Average (EMA) at $1.02. A close below this level could extend the correction further, toward Monday's low at $0.90 according to TradingView.

The Relative Strength Index (RSI) is at 61, down from the overbought level of 70 the previous day, indicating early signs of fading bullish strength according to TradingView. However, the Moving Average Convergence Divergence (MACD) showed a bullish crossover, which remains intact and supports a bullish view. If AXS recovers, it could extend the recovery toward the 38.2% Fibonacci retracement level at $1.37 according to TradingView.

What Risks Are Present in the Current AXS Price Action?

Axie Infinity's AXS price slides more than 7%, trading below $1.12 on Thursday, after a massive surge earlier in the week according to FXStreet. The bearish sentiment strengthens as AXS's exchange netflow hits a 3-year high, alongside negative funding rates and rising short bets, all of which hint at a short-term price pullback according to FXStreet.

Exchange netflow hints at rising selling pressure. CryptoQuant Exchange Netflow (Total) at all exchanges shows the difference between tokens flowing into and out of the exchange according to FXStreet. A positive value indicates more tokens entered than exited, indicating selling pressure. In the Axie Infinity case, the metric showed a net positive flow of 2.10 million on Wednesday, the highest netflow since 24 November 2022, signaling rising selling pressure according to FXStreet.

Derivatives data supports bearish sentiment. Coinglass's OI-Weighted Funding Rate data shows the number of traders betting that the price of AXS will slide further is higher than those anticipating a price increase according to FXStreet. The metric flipped to a negative rate on Wednesday and fell sharply, reading -0.41% on Thursday, indicating shorts are paying longs and suggesting bearish sentiment toward AXS according to FXStreet.

In addition, according to Coinglass data, Axie Infinity's long-to-short ratio is 0.82 on Thursday according to FXStreet. This ratio, below one, reflects bearish sentiment in the markets, as more traders are betting on the asset price to fall according to FXStreet. The AXS price could rally to $2.25 if the current momentum holds, but this will depend on key technical levels remaining intact according to FXStreet. Traders are closely watching for a breakout above $1.50 as a signal of sustained bullish momentum according to FXStreet. If key support levels are broken, however, the price could face renewed downward pressure and return to multi-year lows according to FXStreet.