AXS price could rally to $2.25 if momentum from the four-year low holds.
The Axie Infinity token has bounced more than 13% in the past 24 hours amid a notable recovery from recent losses that pushed AXS to lows last seen in 2021.
As renewed investor interest allows bulls to bounce off a four-year low, the technical picture points to a potential upside continuation.
Sentiment across crypto, with several altcoins attempting reversals after extended periods of pressure, may add to bulls’ advantage.
Market data during early US hours on January 16, 2025 showed Axie Infinity price hovering around $1.23. However, buying pressure had the token trading at highs of $1.30, not far off the weekly resistance level around $1.35 reached on Jan. 14.
In late December, Axie Infinity fell to $0.78, the lowest mark since the breakout from $0.73 to highs of $1.18 in January 2021.
The token has surged by over 30% in the past week, with a revisit to the $1.00 level before another bounce reflecting fresh buying momentum.
A look at the gaming tokens ecosystem, CoinMarketCap data shows AXS to be outpacing peers in the past 24 hours and week.
Immutable, Gala, Floki, The Sandbox, Decentraland and MultiversX are all struggling. Can Axie Infinity continue to buck the trend?
While AXS is not fully out of the woods following its severe drawdown since it peaked at $165, the bounce from under $1 may test bears’ resolve.
Positive developments within the Axie Infinity ecosystem, including economic adjustments and upcoming gameplay enhancements, might combine with overall market sentiment to bolster upward price action.
For instance, Axie Infinity has introduced an App Token (bAXS), which means that instead of AXS, holders can now hold bAXS.
This token can be staked or spent directly in Axie Core. Analysts say the launch of bAXS is a major step for Axie Infinity, and adoption will benefit AXS.
From a technical perspective, the daily chart shows the Relative Strength Index (RSI) at 66.
This indicates that bulls have room to extend gains before entering the overbought territory.
Meanwhile, the Moving Average Convergence Divergence (MACD) recently marked a bullish crossover and features an expanding histogram.
If key support holds at $1.20, the next hurdle may be around $1.50 and $2.25.
On the downside, breaking below the psychological support level will encourage sellers, potentially allowing for another multi-year low.
