Regulators and Markets Clash as AXS Surges and Stumbles

The Axie Infinity (AXS) token experienced a 10% price rally on Sunday, 31 August, amid a surge in trading volume across major South Korean exchanges such as Upbit and Bithumb. AXS saw approximately $131.90 million in trading volume on Sunday, contributing to the broader altcoin volume boom that included assets like XRP and Ethereum (ETH) [1]. This spike marked a significant increase compared to its weekly average of around $30 million in the prior week, with the token reaching as high as $2.8 during the session [1].

Despite the sharp price increase, the rally has yet to establish a sustained uptrend. AXS closed the day at $2.52, below the mid-point of its trading range between $2.1 and $3.42, which has characterized its price action since April [1]. The resistance at the mid-range level was tested and failed during the rally, indicating bearish dominance in the short term. The Accumulation/Distribution (A/D) indicator remained bearish, failing to confirm the bullish momentum generated by the price surge [1].

Technical indicators further suggest caution for AXS holders. The Awesome Oscillator recorded a bullish crossover above the zero line, which typically signals a shift in momentum. However, given the broader market bearishness and the token’s struggle to maintain gains above key resistance levels—$2.51, $2.65, and $2.77—this signal could be misleading [1]. A sustained rally would require increased buying pressure and stronger conviction from traders, both of which appear lacking in the current market environment.

The 1-month liquidation heatmap also highlighted the $2.4 zone as a potential short-term liquidity cluster that could slow the bearish momentum [1]. However, this area was less populated compared to the stronger demand zone at $2.1–$2.2. Based on the range formation and liquidation data, buying AXS near this support zone could be a viable strategy for long-term holders looking to capitalize on potential rebounds.

Meanwhile, regulatory scrutiny in South Korea continues to shape the broader cryptocurrency market. The Financial Supervisory Service recently conducted a spot inspection of Bithumb, one of the country's largest exchanges, over its continued operation of crypto lending services despite prior warnings [2]. This move underscores the increasing regulatory focus on market stability and investor protection, which could indirectly impact the trading dynamics of assets like AXS.

In parallel, Vietnam has taken a different approach by launching a crypto payment pilot program in Da Nang, aimed at converting crypto assets into fiat for international tourists [3]. While this development is not directly related to AXS, it reflects the growing adoption of blockchain-based solutions in the region, which could influence long-term market sentiment for crypto assets.

Source:

[1] Axie Infinity - Why AXS may be at risk despite Sunday's 10 ... (https://ambcrypto.com/axie-infinity-why-axs-may-be-at-risk-despite-sundays-10-price-rally/)

[2] South Korea Sees Trading Volume Surge in These 10 Altcoins: The Big ... (https://en.bitcoinsistemi.com/south-korea-sees-trading-volume-surge-in-these-10-altcoins-the-big-guys-take-the-lead/)

[3] 2 Big Steps Vietnam and South Korea Take in Regulating ... (https://pintu.co.id/en/news/199187-2-big-steps-vietnam-and-south-korea-take-in-regulating-and-developing-crypto)