Did Axie Infinity (AXS) Whales Just Buy Into a Pullback Risk After a 41% Rally?
Despite a 41% rally followed by a 17% pullback, Axie Infinity shows conflicting signals as whales increase holdings while technical indicators suggest rising short-term risk.Summary
The Axie Infinity (AXS) price experienced a rapid 41% surge, hitting resistance near $3.00 before pulling back over 17% daily. This pullback risk is signaled by a bearish harami pattern, which historically preceded a significant correction for AXS. Simultaneously, on-chain data reveals that whales, who were previously reducing exposure, have started accumulating tokens again since January 22, adding about 160,000 AXS, suggesting conviction.
However, momentum indicators like the Money Flow Index (MFI) showed divergence, trending lower as price rose, indicating weakening buying pressure. Exchange flow data also shows that while outflows suggest buying demand remains, it has slowed compared to earlier peaks. Technically, AXS failed to hold above the critical support level of $2.54, which aligns with the 0.618 Fibonacci retracement.
The current situation presents a conflict: whales are buying, but technical fatigue suggests the correction could deepen toward $2.20 or $1.98. If AXS can reclaim and hold above $2.54, the rally might resume; otherwise, a deeper market correction is likely.
(Source：BeInCrypto)