After collapsing to levels last seen in 2021, Axie Infinity (AXS) has staged a strong recovery, pushing above the $1.20 zone and briefly touching the $1.30 area. This rebound represents more than a 13% gain in 24 hours and over 30% on the week, signaling renewed interest after months of sustained selling pressure.
The significance of this move lies in where it started. In late December, AXS dipped to around $0.78, marking a four-year low and a psychological exhaustion point for sellers. Historically, assets bouncing from such long-term lows tend to attract speculative capital, especially when broader altcoin sentiment begins to stabilize. That dynamic is now playing out, with AXS outperforming most gaming-sector peers.
Compared to other gaming tokens like Immutable, Gala, The Sandbox, Decentraland, and MultiversX, AXS is clearly leading the recovery attempt. While the sector as a whole remains under pressure, Axie Infinity appears to be decoupling in the short term, driven by both technical and ecosystem-specific factors.
From a technical perspective, reclaiming the $1.00 level was critical. Holding above it has shifted short-term momentum in favor of bulls, with the next key resistance sitting around $1.35. A clean break above that zone could open room for continuation, while failure would likely invite consolidation rather than immediate breakdown.
Fundamentally, recent ecosystem developments are adding fuel to the narrative. The introduction of bAXS, an app-based token usable directly within Axie Core for staking and spending, represents a meaningful step toward utility-focused token economics. Increased adoption of bAXS could indirectly strengthen demand for AXS, reinforcing the current recovery structure.
AXS is still far from its all-time highs, and long-term damage remains undeniable. But rebounds from multi-year lows are where trend reversals often begin — quietly, before sentiment fully shifts.
For now, Axie Infinity is back on the radar, and the market is watching closely to see whether this move evolves into something more durable.
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