Axie Infinity token price soars over 20% within hours: Here’s why

Axie Infinity (AXS) has seen a dramatic price surge of over 20% within 24 hours, reaching $1.57.

This jump far outpaces Bitcoin’s modest gains over the same period.

Here are the main reasons why the price of Axie Infinity (AXS) is rising:

The upcoming bAXS airdrop

One of the primary drivers behind the rally is the newly announced bonded AXS (bAXS token) airdrop.

Sky Mavis, the developer behind Axie Infinity, revealed that 100,000 bAXS tokens will be distributed to wallets that have staked at least 10 AXS.

The airdrop snapshot was taken on February 5, and eligible stakers will receive allocations based on their Axie Score and the amount of AXS staked.

165 Reply Copy link Each bAXS token is backed 1:1 by AXS, and the airdrop is worth approximately $16.90 per qualifying wallet.

Unlike regular AXS, bAXS is designed to encourage in-game usage, including breeding and evolving Axies and making purchases on the secondary marketplace.

Sky Mavis hopes the token will drive activity within the Axie ecosystem, boosting engagement and spending rather than speculative trading.

The upcoming Terrariums land-based game and the planned Axie Infinity expansion, Atia’s Legacy, are expected to further increase demand for bAXS.

Players will use bAXS to acquire power-ups, consumables, and other in-game items, linking token utility directly to the evolving Axie economy.

Technical rebound from oversold region

Another key factor behind the price surge is a technical rebound from oversold conditions.

AXS’s 7-day RSI recently dropped to 27.79, signalling that the token was deeply oversold.

This created the perfect setup for a momentum-driven rally, amplified by a 216% spike in 24-hour trading volume to $185.76 million.

Traders responded quickly to the oversold conditions, triggering a short-term squeeze.

No major partnership announcements, news, or social catalysts were identified, which suggests that the price action was largely technically driven.

AXS price forecast

Looking ahead, traders should watch a few key levels to gauge the near-term outlook.

Support is currently near $1.44, which aligns with the 7-day simple moving average.

Holding this level is critical to sustaining the current rebound.

Resistance is seen at the 50% Fibonacci retracement level, around $1.93, which could serve as the next target if buying momentum continues.

A failure to maintain $1.44 could see AXS retrace toward recent lows near $0.90.

A more bullish signal would come from a close above the 30-day simple moving average at $1.77, which would indicate stronger conviction in the rally.

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