bAXS Token Announcement Sparks Trendline Breakout

• Axie Infinity surges 3.65% to $2.581 after breaking above the descending trendline that capped rallies since May 2025.
• Co-founder Jihoz announces bAXS, a new app token designed to align AXS with its original purpose of giving players stake in the ecosystem.
• Spot exchange inflows reach $1.03 million as traders accumulate ahead of the tokenomics shift.

Axie Infinity price today trades near $2.581 after breaking above an eight-month descending trendline. The rally follows the announcement of bAXS, a new app token that aims to restructure the ecosystem’s tokenomics and reward engaged players over speculators.

bAXS Announcement Shifts Tokenomics Narrative

Co-founder Jihoz revealed plans for bAXS, an app token version of AXS built using Limit Break’s app token framework. The mechanism addresses longstanding issues with managing tokens in gaming economies.

The key innovation ties exchange rates to Axie Score, a reputation metric earned through owning rare Axies, playing games, and participating in governance. Players with higher scores receive better conversion rates, while selling incurs fees that flow to the treasury.

The design aims to align AXS with its original vision of giving players real ownership in the universe rather than serving as instant liquidity. By penalizing quick flips and rewarding engagement, the mechanism could reduce sell pressure from speculators while incentivizing long-term holding.

Spot Inflows Confirm Accumulation

Exchange flow data shows buyers responding to the announcement. Coinglass recorded $1.03 million in net inflows on January 27, meaning coins are moving off exchanges into private wallets.

The accumulation pattern suggests that traders view the bAXS announcement as fundamentally bullish. When spot flows turn positive during breakouts, it typically confirms that the move has conviction behind it rather than just short-term speculation.

The inflow follows a period of relatively flat flows, indicating that the announcement sparked fresh buying interest rather than continuation of existing trends.

Price Breaks Eight-Month Downtrend

On the daily chart, AXS has broken above the descending trendline drawn from the May 2025 high near $4.00. This structure capped every rally attempt for eight months, making the breakout technically significant.

The Supertrend indicator flipped bullish at $1.729 and now sits well below current price, confirming the momentum shift. However, the Parabolic SAR remains bearish at $2.947, representing the next resistance target.

Key levels now:

• Immediate resistance: $2.947 (SAR)
• Major resistance: $3.00 (psychological)
• Secondary resistance: $3.50 (prior support zone)
• Immediate support: $2.50 (breakout level)
• Supertrend support: $1.729
• Breakdown target: $2.00

The breakout level at $2.50 becomes critical support. Holding above this zone on pullbacks would confirm the trendline break and establish it as the new floor.

Intraday Structure Shows Consolidation

Shorter timeframes reveal the consolidation pattern. On the 30-minute chart, AXS has established horizontal support at $2.50 after the initial breakout spike toward $3.00.

RSI sits at 59.20, bullish but not yet overbought. MACD remains positive with the histogram showing sustained momentum. The indicators suggest room for further upside before the rally becomes extended.

The $2.50 level has been tested twice since the breakout, with buyers defending it both times. A third test that would confirm the support zone. A break below $2.50 would signal the breakout has failed.

Outlook: Will The Breakout Hold?

The setup combines fundamental catalyst with technical breakout. The bAXS announcement provides narrative support while the trendline break offers clear levels to trade against. The key question is whether the tokenomics shift generates sustained interest.

• Bullish case: Price holds $2.50 support and breaks above $2.947 SAR resistance. A close above $3.00 confirms the breakout and targets $3.50.
• Bearish case: The breakout fails and price drops below $2.50. A close below this level traps breakout buyers and targets $2.00.

Axie Infinity has broken its longest downtrend on meaningful news. The bAXS mechanism could fundamentally change token dynamics if implementation matches the vision.