$AXS Breaks Key Resistance: Bullish Momentum Builds for 2026

• $AXS confirms bullish trend shift after retesting 2.50–2.46 support zone.

• Price reaches 2.927, signaling strong buyer conviction and momentum.

• Potential pullback toward 2.60–2.50 could offer an ideal entry for new buyers.

$AXS (Axie Infinity) has shifted from recovery mode into trend acceleration, with a decisive break above critical price levels. This shift is marked by a successful retest of key support, signaling a bullish trend continuation. The recent price action suggests more upside potential, with a controlled pullback being the next logical step.

Price Action and Trend Acceleration

The price of $AXS has transitioned from a consolidation phase to a marked uptrend, following the successful retest of the 2.50–2.46 support zone. This level, previously acting as resistance, has now turned into a key demand zone.

When the price bounced off this area, it solidified the shift in market sentiment, allowing for a confident push higher. The breakout to 2.927, the highest price of 2026, confirms that buyers are willing to chase prices higher.

This signals confidence in the trend rather than exhaustion. The impulsive nature of the move, along with expanding volume, suggests that the rise is driven by fresh buying interest, not short covering or forced buying.

Given the strength of the breakout, the next logical price targets are around 2.98 and 3.02. Levels that align with both psychological round numbers and local resistance zones.

However, extending the target range to 3.11 makes sense, as the 3.10–3.11 area marks historical resistance and a potential liquidity trap.

$AXS #AxieInfinity

Yesterday, in the 2.56–2.58 range, we highlighted aggressive buyers stepping in.

From there, price held the critical support zone at 2.50–2.46 before launching a new impulsive leg higher, printing a current high of 2.927, the new 2026 peak.

My initial… pic.twitter.com/fvsCvYnUYG

— Enri.hl (@0xWhale) January 23, 2026

Momentum and Compression Risk

While $AXS has shown strong momentum, momentum indicators are flashing signs of potential compression. The RSI on the 4-hour chart is currently in overbought territory, signaling that the market is becoming overheated.

Historically, $AXS has not sustained vertical moves without a pullback, and such overbought conditions often lead to a correction or consolidation. A healthy retracement toward the 2.70–2.60 region, or possibly a deeper pullback to the 2.50 support zone, would help reset momentum.

This would allow the RSI to cool down, providing a more favorable entry for fresh buyers.

Market Makers and Liquidity Engineering

At current levels, market makers could engineer liquidity, especially as the price reaches the 2.98–3.11 resistance zone. By pushing price into this range, smart money could distribute positions into strength, triggering breakout FOMO and enticing new buyers to chase.

Once the price reaches these levels, they could walk the price back into demand, optimizing their positions. For retail traders, chasing prices at these levels presents risks.

Even though the broader trend is bullish, the potential for a pullback increases as the market reaches overbought conditions. This is why a cautious approach, waiting for a correction, may be the best strategy for entering the market at more favorable levels.