Axie Infinity: Why AXS faces 30% pullback risk despite record volume?

Axie Infinity’s AXS token was one of the biggest winners in the GameFi sector. CoinMarketCap data showed that the altcoin has made 10.79% gains over the past week, even after its 15% pullback from $3 since Saturday.

AMBCrypto noted that the token had erased all the losses it made since September 2025. The report also highlighted the risk of a pullback, noting that momentum indicators appeared overextended despite strong investor participation.

The recent dip from $3 confirmed that the AXS retracement was likely underway.

How deep would the drop extend?

Axie Infinity’s RSI crosses 50 for the first time in year

Source: AXS/USDT on TradingView

The weekly chart showed promise, but also that the conditions have not fully shifted in favor of the bulls. The extremely high weekly trading volume recently was encouraging. It sent the OBV rocketing toward highs not made since 2024.

The weekly RSI also moved past neutral 50, something the Axie Infinity [AXS] token has not seen since late December 2024.

At the same time, the $2.92 swing high from July 2024 was not yet breached on the weekly timeframe. By the looks of things, Sunday’s price action will not see a weekly close above $2.92.

It is possible that this might set up a pullback, especially with Bitcoin [BTC] trading below the $90k level again. Investors looking at AXS might want to wait for a move beyond $2.92-$3.0 before looking to buy.

The AXS pullback scenario

Source: AXS/USDT on TradingView

The 1-day timeframe still has a bullish structure, but the RSI indicated a bearish divergence. Moreover, the daily session was unable to close above $2.92, alongside the divergence, sparking the rapid pullback.

The Fibonacci retracement levels based on the recent swing move showed that $1.878 is the immediate price target.

Traders’ call to action – Wait and watch!

The current retracement might offer short sellers scalping opportunities.

For swing traders, a retracement into the $1.238-$1.878 area is necessary. After that, depending on AXS’ price reaction, volume, and wider market sentiment, buyers can reassess their options.

Final Thoughts

• The Axie Infinity run was remarkable, measuring nearly 225% in just over three weeks- but it was still unable to clear the weekly swing high.
• The subsequent rejection meant that traders can expect a retracement toward $1.3-$1.8 next.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.