Axie Infinity (AXS) posted one of its strongest daily performances over the past few weeks, climbing 23.13% as traders pushed trading volume up 630.63% to $127.54 million.
The rally pushed the token to $1.16 at press time and increased its market capitalization by 23.05% to $201.94 million.
Such a sharp rise in prices and activity highlighted a notable change in market sentiment after several weeks of subdued performance.
Traders piled into AXS leveraged positions
Derivatives activity strengthened as Open interest soared 91.02% to $38.64 million, reflecting a large influx of capital into the futures markets.
A rise in open interest alongside a rise in price often indicates that new positions have entered the market rather than existing traders simply closing their exposure.
This development aligns with the broader increase in trading activity and highlights the growing speculative interest around the token.
However, high open interest can increase volatility as the price approaches key resistance zones.
For now, data suggests that market participants have shown greater confidence in the recovery, with derivatives traders contributing significantly to the latest bullish move.
Supply on stock exchanges continued to decrease
On-chain data revealed a notable reduction in the supply of AXS held on exchanges.
FX reserves fell 29.27% to 8.473 million tokens, extending a broader decline in available FX balances.
Lower reserves generally indicate that investors have transferred the tokens from trading platforms, thereby reducing the amount readily available for immediate sale.
The continued reduction suggests that a portion of holders preferred safekeeping outside exchanges rather than positioning themselves for short-term liquidation.
AXS Breakout Shifts Focus to Higher Levels
Price developments strengthened considerably after AXS broke out of a descending channel that had guided the downtrend throughout June.
The breakout developed after buyers defended support near $0.882 and regained control of the near-term market structure.
AXS then climbed towards the key resistance level of $1.203, which now poses the immediate obstacle to further gains.
Technical indicators also supported the improving outlook.
The MACD produced a bullish crossover, while the histogram moved into positive territory and reflected the strengthening buying pressure.
Meanwhile, the Parabolic SAR fell below price, signaling that the previous downtrend had lost control.
Together, these indicators aligned with the channel breakout and reinforced the recovery narrative. If buyers continue to defend the breakout zone, the market could maintain upward pressure.
Final Summary
- Trading activity and leverage rose sharply, bolstering AXS’s latest turnaround attempt.
- Falling foreign exchange reserves and bullish indicators supported the break above support.
