3 SIGNS AXIE INFINITY PRICE RISKS GIVING UP ITS 135% GAINS IN JANUARY

Last updated: June 19, 2025, 23:09 | Written by: Changpeng Zhao

Axie Infinity (AXS), the once-dominant play-to-earn (P2E) crypto game, has experienced a remarkable resurgence in January, rallying a staggering 135% to reach approximately $14 on January 23rd. 3 signs Axie Infinity price risks giving up its 135% gains in January 3 signs Axie Infinity price risks giving up its 135% gains in January. January 23This surge marked its highest level in two months, reigniting hopes amongst investors who had witnessed a significant downturn in the token's value.The question on everyone's mind now is: can this momentum be sustained, or is AXS poised for a correction? Axie Infinity has rallied 135% month-to-date to reach approximately $14 on Jan. 23, its highest level in two months. Nonetheless, the AXS/USD pair could suffer major losses in the coming weeksWhile the recent gains are undoubtedly encouraging, a closer look at the technical and fundamental indicators reveals a potential storm brewing on the horizon.Several factors suggest that Axie Infinity could be at risk of relinquishing a significant portion of its January gains. Season 3 : Uncovering the Power of Bitcoin: Top 3 Amazing Features; Season 4: Decentralized Networks: An Introduction to Bitcoin and the Future of Finance; Season 5: Decentralized Networks: Bitcoin: The Digital Revolution Origin, Challenges, and the Future; Videos; Products. TaBit Dapp; Laqira Protocol; Laqira Exchange; Laqira DEX; NFTFrom bearish chart patterns to concerns about token supply and the overall health of the P2E gaming sector, investors should exercise caution and carefully evaluate the potential risks before committing further capital. Axie Infinity (AXS) has rallied 135% month-to-date to reach approximately $14 on Jan. 23, its highest level in two months. Nonetheless, the AXS/USD pair could suffer major losses in 3 signs Axie Infinity price risks giving up its 135% gains in JanuaryThis article will delve into the three key signs that suggest Axie Infinity's price may be heading for a pullback, providing you with the insights needed to make informed decisions.

Bearish Technical Indicators: The Gravestone Doji Emerges

One of the most immediate warning signs for AXS lies in its technical chart.A **gravestone doji** has formed on the daily chart.This candlestick pattern is often interpreted as a bearish reversal signal, particularly after a period of strong upward momentum.

Understanding the Gravestone Doji

The gravestone doji is characterized by a long upper shadow, a small body (or no body at all), and little to no lower shadow. AXS price has formed a gravestone doji on its daily chart that coupled with its recent token unlock event hint at a potential bearish reversal ahead.It indicates that buyers initially pushed the price higher, but sellers quickly stepped in to drive the price back down, ultimately closing near the open. 3 signs Axie Infinity price risks giving up its 135% gains in January AltcoinMarket AxieInfinity AXSPrice CryptoAnalysis Gaming NFT AXS price hasThis suggests a loss of buying pressure and a potential shift in sentiment towards selling.

In the context of Axie Infinity's recent rally, the appearance of a gravestone doji signals that the bulls may be losing steam. Report this post 3 signs Axie Infinity price risks giving up its 135% gains in January cryptonews Bitcoin Eth Altcoins Blockchain cryptocurrencies CryptoThe price attempted to break higher, but encountered significant resistance, suggesting that the upward trend may be nearing its end.This is the first, and arguably most visual, sign that the AXS price is in a precarious position.

Token Unlock and Expanding Supply

From a fundamental perspective, the Axie Infinity price faces headwinds due to its token unlock schedule. 3 signs Axie Infinity price risks giving up its 135% gains in January Axie Infinity ( AXS ) has rallied 135% month-to-date to reach approximately $14 on Jan. 23, its highest level in two months. Nonetheless, the AXS/USD pair could suffer major losses in the coming weeks owing to a flurry of negative technical and fundamental indicators.A recent token unlock event resulted in an expansion of the total AXS supply by 1.8%. [ad_1]Axie Infinity (AXS) has rallied 135% month-to-date to reach approximately $14 on Jan. 23, its highest level in two months. Nonetheless, the AXS/USD pair could suffer major losses in the coming weeks owing to a flurry of negative technical andWhile seemingly small, this increase in supply can exert downward pressure on the price, especially if demand doesn't keep pace.

Dilution Effect on Price

The core principle at play here is simple economics: an increase in supply, without a corresponding increase in demand, leads to a decrease in price.When new AXS tokens are introduced into the market, they dilute the existing supply, potentially making each token less valuable. 3 signs Axie Infinity price risks giving up its 135% gains in JanuaryThis is especially true if these newly unlocked tokens are sold into the market, further increasing the selling pressure.

It's crucial to understand that token unlocks are a planned part of Axie Infinity's tokenomics.They are intended to incentivize staking and participation within the ecosystem. Janu. News . Who Had the Better Stock Market? Janu. Stocks. Stocks . Who Had the Better Stock Market? Janu. Stocks .However, the timing of these unlocks, particularly after a significant price rally, can exacerbate selling pressure and contribute to a price correction.

Weakness in the Play-to-Earn Sector

While Axie Infinity has shown signs of revival, the overall play-to-earn (P2E) gaming sector remains under pressure.Concerns about the sustainability of P2E models, the influx of new, often low-quality games, and the continued regulatory uncertainty surrounding crypto gaming continue to weigh on investor sentiment.

Sustainability Concerns

The early days of P2E gaming were fueled by hype and speculation.Many games promised substantial returns for players, but few have delivered on that promise long-term. 3 signs Axie Infinity price risks giving up its 135% gains in January gains signs axie giving pricerisk ⁣The inherent challenge lies in creating a sustainable economic model that rewards players without constantly inflating the token supply or creating unsustainable Ponzi-like dynamics. The price of Axie Infinity is up this week. As of now, Axie Infinity (AXS) is trading at CA$9.74, with a 24-hour variation of 1.5% and a weekly performance of 4.2% . The market capitalization stands at CA$1.42 billion, placing Axie Infinity at rank 83 among all cryptocurrencies.Axie Infinity, while pioneering the space, has faced its own challenges in this regard, requiring significant adjustments to its reward structure and gameplay mechanics.

The Rise of Competitors and Quality Concerns

The success of Axie Infinity spawned a wave of competitors, many of which offered similar gameplay mechanics and reward structures. AXS price 'gravestone' doji hints at a bearish reversal ahead.) has rallied 135% month-to-date to reach approximately $14 on Jan. 23, its highest level in two months. Nonetheless, the AXS/USD pair could suffer major losses in the coming weeks owing to a flurry of negative technical and fundamental indicators.However, the quality of these games has often been questionable, leading to a dilution of the overall P2E gaming landscape.This increased competition and the proliferation of low-quality games can divert attention and capital away from established projects like Axie Infinity.

Regulatory Uncertainty

The regulatory landscape surrounding crypto gaming remains murky.Governments around the world are grappling with how to classify and regulate these games, raising concerns about potential restrictions or outright bans.This uncertainty can spook investors and lead to a more cautious approach towards P2E gaming tokens.

Analyzing the Current Market Position

As of now, Axie Infinity (AXS) is trading at approximately CA$9.74, with a 24-hour variation of 1.5% and a weekly performance of 4.2%.The market capitalization stands at CA$1.42 billion, placing Axie Infinity at rank 83 among all cryptocurrencies.While the weekly performance is positive, it's important to consider the context of the 135% rally earlier in the month. The nearest downside target for AXS comes to be near its 50-day EMA (the red wave) at around $8, or a 40% drop by March. Axie Infinity total supply expands 1.8%. From a fundamental perspective, the Axie Infinity price could fall in the coming weeks due to its latest supply unlock. Related: Axie Infinity is toxic for crypto gamingA 4.2% gain after such a surge could be interpreted as a sign that the upward momentum is slowing.

Potential Downside Targets for AXS

If the bearish signals materialize, what are the potential downside targets for AXS?According to technical analysis, the nearest downside target lies near its 50-day EMA (Exponential Moving Average), which sits around $8. Axie Infinity (AXS) has rallied 135% month-to-date to reach approximately $14 on Jan. 23, its highest level in two months. Nonetheless, the AXS/USD pair could suffer major losses in the coming weeks owing to a flurry of negative technical and fundamental indicators.Axie Infinity price prints gravestoneThis represents a potential drop of approximately 40% from its recent high. 3 signs Axie Infinity price risks giving up its 135% gains in January Axie Infinity (AXS) has rallied 135% month-to-date to reach approximately $14 on Jan. 23, its highest level in two months.A break below the 50-day EMA could open the door for further declines, potentially towards previous support levels.

Monitoring Key Support Levels

Investors should closely monitor key support levels. Posted by u/Cointelegraph_news - 1 vote and no commentsThese are price points where buying pressure is expected to emerge, potentially halting the decline. 3 signs Axie Infinity price risks giving up its 135% gains in January br br AXS price has formed a gravestone doji on its daily chart that coupled with its recent token unlock event hint at a potential bearish reversal ahead. br br news cointelegraphIdentifying these levels can help you make informed decisions about where to potentially buy back in if you believe in the long-term potential of Axie Infinity.

Axie Infinity's Total Supply Expansion: A Deeper Dive

The expansion of Axie Infinity's total supply, while seemingly small at 1.8%, can have significant ramifications.This section dives deeper into understanding the mechanics and potential impacts of this event.

Understanding Token Unlock Schedules

Most cryptocurrencies have a predetermined token unlock schedule.This schedule dictates when and how new tokens will be released into circulation.These unlocks are typically used to incentivize various stakeholders, including team members, advisors, and early investors.Axie Infinity's token unlock schedule is designed to reward staking and active participation in the ecosystem.

The Impact on Stakers and Validators

Token unlocks can be beneficial for stakers and validators. Axie Infinity (AXS) has rallied 135% month-to-date to reach approximately $14 on Jan. 23, its highest level in two months. 3 signs Axie Infinity price risks giving up its 135% gains in JanuaryBy increasing the total supply, the rewards for staking and validation may also increase, incentivizing further participation and strengthening the network.However, if the increased rewards are not sufficient to offset the potential dilution effect on the price, stakers may choose to sell their newly acquired tokens, contributing to further selling pressure.

Addressing Common Concerns and Questions

Let's address some common questions and concerns that investors might have regarding Axie Infinity's potential price correction:

Is Axie Infinity Dead?

No, Axie Infinity is not dead. 3 signs Axie Infinity price risks giving up its 135% gains in January cointelegraph.comWhile the game has faced challenges and experienced significant price volatility, it remains one of the most popular blockchain games in the world. Axie Infinity total supply expands 1.8%. AXS price bullish hopes remain. 3 signs Axie Infinity price risks giving up its 135% gains in JanuaryThe team is actively working on improving the game, introducing new features, and addressing concerns about the sustainability of its economic model. Axie Infinity (AXS) has rallied 135% month-to-date to reach approximately $14 on Jan. 23, its highest level in two months. Nonetheless, the AXS/USD pair could suffer major losses in the coming weeks owing to a flurry of negative technical and fundamental indicators. Axie Infinity price prints gravestone dojiHowever, it's important to acknowledge that the P2E landscape is constantly evolving, and Axie Infinity must continue to adapt to remain competitive.

Should I Sell My AXS Tokens?

The decision to sell your AXS tokens is a personal one that depends on your individual risk tolerance, investment goals, and belief in the long-term potential of the project.If you are concerned about the potential for a significant price correction, it may be prudent to reduce your exposure or set stop-loss orders to protect your capital.However, if you believe in the long-term vision of Axie Infinity and are willing to weather potential volatility, you may choose to hold onto your tokens.

What are the Long-Term Prospects for Axie Infinity?

The long-term prospects for Axie Infinity are uncertain.The success of the project hinges on its ability to adapt to the evolving P2E gaming landscape, address concerns about sustainability, and attract and retain players.The team's efforts to improve the gameplay mechanics, introduce new features, and explore new economic models will be crucial in determining the long-term viability of Axie Infinity.Furthermore, the overall health of the cryptocurrency market and the regulatory environment surrounding crypto gaming will also play a significant role.

Actionable Advice for Investors

Here's some actionable advice for investors considering investing in or holding AXS tokens:

Do Your Own Research (DYOR): Before investing in any cryptocurrency, it's crucial to conduct thorough research.Understand the project's fundamentals, team, tokenomics, and potential risks.
Manage Your Risk: Never invest more than you can afford to lose.Cryptocurrency investments are inherently risky, and there's always the possibility of losing your entire investment.
Set Stop-Loss Orders: Consider setting stop-loss orders to protect your capital in case of a price decline.A stop-loss order automatically sells your tokens if the price falls below a certain level.
Diversify Your Portfolio: Don't put all your eggs in one basket.Diversify your portfolio by investing in a variety of different cryptocurrencies and asset classes.
Stay Informed: Keep up-to-date on the latest news and developments in the cryptocurrency market and the Axie Infinity ecosystem.

Conclusion: Proceed with Caution

Axie Infinity's impressive 135% rally in January has undoubtedly sparked renewed interest in the P2E game and the AXS token.However, the appearance of a gravestone doji, coupled with concerns about token unlocks and the overall health of the P2E sector, suggests that a significant price correction may be on the horizon.Investors should proceed with caution, conduct thorough research, and manage their risk accordingly.While Axie Infinity remains a prominent player in the blockchain gaming space, its long-term success is far from guaranteed.The potential downside targets are significant, and it's crucial to be prepared for a possible pullback.By understanding the risks and taking appropriate precautions, investors can make informed decisions about their involvement with Axie Infinity.