AXS, the Axie Infinity Game’s native cryptocurrency asset, had a rapid rise, rising by more than 20% in a couple of minutes.
AXS made a large daily green candlestick with a lengthy upward wick as the price surged. Within an hour, AXS rose from $4.22 to $5.15, earning over 22%.
Although some of the gains had moderated as of the publication of this article, AXS was still up 9.37% over the previous day to $4.61.
After plummeting to a low of $4.059 on September 11 and hitting a low last seen in June 2021, AXS started to rebound. AXS acknowledged oversold circumstances as soon as its daily RSI dropped from 30 to 21, signalling a turnaround.
The gaming token stabilised on the started comeback and then rallied for two days in a row. In today’s trading session, the rally reached highs of $5.15 with a sudden jump.
A glance via AXS’s official X account reveals no significant announcement or improvement that may have been required to cause the price surge, but the precise cause of the increase is still unknown. But as things stand, it appears that the rise was technically supported.
An unanticipated short squeeze, which is a sharp rise in price mostly due to excessive short selling rather than underlying fundamentals, is the most likely cause of the price spike.
This is demonstrated by the fact that the unexpected action resulted in a sizable quantity of short liquidation. Axie Infinity was liquidated for $1.41 million during the course of the previous four hours, with short positions accounting for a bigger portion at $798,420.
As traders rushed into the market to take advantage of the unexpected price change, trading volumes also sharply increased. Over $100 million has been transacted in AXS, a 343% increase in trading volume over the previous 24 hours.
