Is The 180% Axie Infinity (AXS) Rally Just Exit Liquidity For Holders? Charts Have The Answer

Axie Infinity (AXS) has surged approximately 180% month-on-month, confirming a bullish flag breakout, but technical indicators suggest the rally might be providing exit liquidity for larger holders. The price hit a high near $2.54 but was sharply rejected, forming a long upper wick signaling active selling pressure. Furthermore, a developing bearish divergence between price highs and the Relative Strength Index (RSI) indicates fading upside momentum.

On-chain data supports this concern: whales have reduced their supply by about 4.4% during the rally, and long-term holders (1-year to 2-year cohort) have significantly decreased their holdings. This selling coincides with short-term holders increasing their share by over 80%. This pattern, where long-term holders sell into strength while short-term buyers chase momentum, is characteristic of an exit liquidity structure. The Net Unrealized Profit/Loss (NUPL) metric shows holders are still selling at a loss, incentivizing them to exit as losses shrink.

Key support levels must hold for the rally to continue: the immediate support is $2.17–$2.20, with stronger structural support at $1.62–$1.64. A break below $1.63 would invalidate the breakout structure. Bulls need a clean daily close above the resistance at $2.54 to target higher levels like $2.72 or $3.01.

(Source：BeInCrypto)