Axie Infinity (AXS), a leading GameFi token, has been on a wild ride this week, capturing the attention of traders and analysts across the crypto world. After languishing in a prolonged downtrend, AXS staged a dramatic comeback, surging nearly 45% at one point and igniting fresh debate about whether GameFi is back in favor or just experiencing a fleeting burst of speculation.
According to data reported by multiple sources, including FXStreet and Filmogaz, the rally began in earnest on January 14, 2026, with AXS trading around $1.29—up roughly 33% in just 24 hours. This wasn’t a typical low-liquidity pump, either. Trading volume soared to nearly $380 million, and the live market cap hovered around $217 million, signaling that the move was driven by genuine market participation rather than a handful of whales.
Derivatives markets added further fuel to the fire. As detailed by Filmogaz, futures trading volume exceeded a whopping $526 million, with about $1.5 million in liquidations and open interest near $44.6 million. These numbers painted a picture of short covering and new positions flooding in, as traders scrambled to catch the move or avoid being caught on the wrong side of it.
So, what’s behind this sudden surge? Several factors converged to create a perfect storm. First, risk appetite appears to be returning to the higher-volatility corners of the crypto market. GameFi, a sector that had been left for dead by many after the 2021 boom, suddenly saw renewed interest. As traders know all too well, once buyers step in to these neglected sectors, rebounds can accelerate in a hurry.
There’s also a narrative shift at play. Axie Infinity recently introduced a series of staking and incentive adjustments, including an Axie Score-based rewards experiment scheduled for January 2026. These changes, as highlighted by both BeInCrypto and Filmogaz, have brought the project back into the spotlight and improved sentiment among holders and speculators alike. As one market analyst put it, "The Axie Score rewards experiment is a fresh take on incentivizing participation, and it’s got people talking again."
Technically, AXS broke out from a multi-month descending channel, pushing above the $1.20–$1.30 base after repeatedly printing lower highs. The weekly chart, according to Filmogaz, shows a strong rebound from the channel’s lower boundary. Bollinger Bands have tightened, a classic sign that volatility expansion is underway, while the Relative Strength Index (RSI) has lifted from weak levels, supporting the case for a bullish reversal.
By January 15, 2026, AXS was still trading close to $1.31, marking a weekly increase of nearly 37%. Price targets, if AXS manages to hold above the $1.10–$1.20 range, sit at $1.50–$1.60 initially and then $1.75–$2.00. However, traders are keenly aware that losing the $1.10 level could see the token retest the $0.90 area.
But just as quickly as the rally arrived, warning signs began to flash. On January 15, 2026, AXS slid more than 7%, dipping below $1.12. FXStreet reported that this reversal coincided with a surge in exchange netflow—a net positive flow of 2.10 million tokens on January 14, the highest since November 24, 2022. Positive netflow means more tokens are entering exchanges than leaving, which typically indicates selling pressure as investors look to cash in on gains.
The derivatives market echoed this newfound caution. Coinglass data showed the funding rate flipping negative, hitting -0.41% on January 15. This means shorts were paying longs, a sign that bearish bets were outweighing bullish ones. The long-to-short ratio dropped to 0.82, further reflecting that more traders were betting on a decline than a rally.
Technical indicators started to show cracks as well. The RSI, which had shot up to an overbought 70 during the surge, fell back to 61, suggesting that bullish momentum was fading. Still, the Moving Average Convergence Divergence (MACD) remained in a bullish crossover, hinting that not all hope was lost for those betting on a sustained recovery.
As for the price forecast, it’s a story of pivotal levels and cautious optimism. If AXS continues to pull back, FXStreet suggests the decline could extend toward the 50-day Exponential Moving Average (EMA) at $1.02, and potentially further to Monday’s low at $0.90. On the flip side, a recovery could see AXS revisit the 38.2% Fibonacci retracement level at $1.37.
Market participants are now split on what comes next. Some see the recent surge as the start of a real trend shift, especially given the improved momentum and broader participation. Others warn that this could be a classic reaction bounce from oversold levels, destined to fade as quickly as it began. As BeInCrypto noted, "Big green candles can attract quick buyers, yet the rally only becomes meaningful if AXS can stay firm after the excitement fades."
For now, the next few trading sessions are set to be decisive. If AXS can hold its recent base and keep pullbacks shallow, it could signal real accumulation and set the stage for a stronger recovery. However, if the token gives back most of its gains in short order, it risks being remembered as just another short-lived squeeze in the volatile world of crypto.
One thing’s for sure: the GameFi sector is back on the radar, and Axie Infinity is leading the charge—at least for now. The coming days will reveal whether this is the start of a new chapter or just a brief return to the spotlight before fading back into the crowd.