Axie Infinity extends gains as bullish momentum targets $3

Axie Infinity (AXS) extends its gains by 8%, trading above $2.56 at the time of writing on Thursday, after rallying over 37% this week. The bullish price action is further strengthened by rising whale accumulation volume. On the technical side, bulls are in control of momentum, targeting levels above $3.

Rising whale accumulation, surging volume underpin AXS

Santiment’s Supply Distribution data back a bullish outlook for Axie Infinity as whale accumulation accelerates.

The metric indicates that whales holding between 100,000 and 1 million AXS tokens (red line), 1 million and 10 million AXS tokens (yellow line), and 10 million and 100 million AXS tokens (blue line) have accumulated a total of 100.56 million tokens from January 12 to Thursday.

Santiment data indicate that the AXS ecosystem’s trading volume (the aggregate trading volume generated by all exchange applications on the chain) reached $1 billion on January 17, the highest level since November 2024 and has been steady at around $713.59 million on Thursday. This volume rise indicates a surge in traders’ interest and liquidity in Axie Infinity, boosting its bullish outlook.

Axie Infinity Price Forecast: AXS bulls are in control

Axie Infinity price broke above the descending trendline (drawn by connecting multiple highs since mid-May) on Saturday and declined 17% over the next two days, then retested this broken trendline. On Tuesday, AXS found support and rose by over 43% through the next day. As of writing on Thursday, it continues to trade higher by 8% around $2.56.

If AXS continues its upward trend, it could extend the rally toward the weekly resistance at $3.02.

The Relative Strength Index (RSI) on the daily chart reads 79, above the overbought levels, indicating strong bullish momentum. Moreover, the Moving Average Convergence Divergence (MACD) also showed a bullish crossover, with the histogram bars rising, further supporting the bullish view.

However, if AXS faces a correction, it could extend the decline toward the weekly support at $2.26.