Key Takeaways:
- Axie Infinity’s AXS token price has popped 20% in a day.
- No concrete reason behind the rally except AXS’s positive correlation with the crypto market.
- Derivative traders show no confidence in the AXS boom.
YEREVAN (CoinChapter.com) — Axie Infinity (AXS) prices are up today, mirroring similar trends elsewhere in the crypto market.
AXS Price Hits One-Month High
On Sep. 14, the AXS price rose more than 20% to $5.11, its highest level in a month, according to CoinStats data. In doing so, the token outperformed the rest of the crypto market, whose upside move on the same day amounted to nearly 2.25%.
Traders flocked to purchase Bitcoin and altcoins primarily due to two reasons. First, they anticipate that the Federal Reserve will pause interest rate hikes due to the latest inflation print meeting market expectations.
For instance, derivatives traders now see a 97% probability of a rate pause in September versus 93% a week ago.
Second, the crypto market overcame the fears of a potential FTX crypto dump after a federal court ruled that the defunct crypto exchange will be allowed to sell its holdings in parts, not all at once. So, it appears AXS benefited from such broader fundamental factors on Sep. 14.
A Nonsense Rally, Nonetheless
The AXS price rally lacked a fundamental explanation, given the official Axie Infinity social media handles had nothing concrete to justify a 20% intraday boom. On the other hand, the AXS derivatives market showed that the token’s funding rate dropped to -0.36%, its worst on record.
Negative funding rates mean that AXS’s spot price traded below its derivatives price on Sep. 14. Simply put, short positions were dominant over long positions on the day. That is despite the AXS short liquidations worth over $933,500 compared to long positions’ $656,000.
A deepening funding rate against a price rise shows most traders remain convinced about a spot market crash ahead. Historically, AXS’s funding rate has remained negative — anyway — due to its routine supply unlocks that reduce the token’s value in a lower-demand environment.
That shows bears have made more money by shorting AXS than bulls that long AXS. And from a technical perspective, bears seem to have an upper hand in the coming weeks.
Axie Infinity Price Analysis 2023
The AXS price’s latest rebound started near its multi-month descending trendline support. This support trendline, in turn, is part of a giant descending parallel channel in conjugation with a falling trendline resistance.
As of Sep. 14, the AXS price had tested the upper trendline area, particularly the 50-day exponential moving average (50-day EMA; the red wave) near $5.05, for a pullback. And now, the Axie Infinity token risks continuing the retreat to retest the channel’s lower trendline to establish a new record low.
