Axie Infinity [AXS] recorded one of its strongest daily performances in recent weeks, climbing 23.13% as traders drove trading volume up 630.63% to $127.54 million.
The rally pushed the token to $1.16 at press time and lifted its market capitalization by 23.05% to $201.94 million.
Such a sharp increase in both price and activity highlighted a notable shift in market sentiment after several weeks of subdued performance.
Traders piled into AXS leveraged positions
Derivatives activity strengthened as Open Interest climbed 91.02% and reached $38.64 million, reflecting a substantial influx of capital into futures markets.
Rising Open Interest alongside a rising price often indicates that new positions entered the market rather than existing traders merely closing exposure.
This development aligned with the broader increase in trading activity and highlighted growing speculative interest around the token.
However, elevated Open Interest can increase volatility when price approaches major resistance zones.
For now, the data suggested that market participants had shown stronger confidence in the recovery, with derivatives traders contributing significantly to the latest upside move.
Supply on exchanges continued shrinking
On-chain data revealed a notable reduction in exchange-held AXS supply.
Exchange reserves fell by 29.27% to 8.473 million tokens, extending a broader decline in available exchange balances.
Lower reserves generally indicate that investors have transferred tokens away from trading platforms, reducing the amount readily available for immediate selling.
The continued reduction suggested that a portion of holders had preferred custody outside exchanges rather than positioning for near-term liquidation.
AXS breakout shifts focus toward higher levels
Price action strengthened considerably after AXS broke above a descending channel that had guided the downtrend throughout June.
The breakout developed after buyers defended support near $0.882 and regained control of short-term market structure.
AXS subsequently climbed toward the key $1.203 resistance level, which now stands as the immediate hurdle for further gains.
Technical indicators also supported the improving outlook.
The MACD produced a bullish crossover, while the histogram shifted into positive territory and reflected strengthening buying pressure.
Meanwhile, the Parabolic SAR flipped below price, signaling that the previous bearish trend had lost control.
Together, these indicators aligned with the channel breakout and reinforced the recovery narrative. If buyers continue defending the breakout zone, the market could maintain upward pressure.
Final Summary
- Trading activity and leverage increased sharply, reinforcing AXS’s latest recovery attempt.
- Declining exchange reserves and bullish indicators supported the breakout above support.