AXS Jumps 130% In a Week – Is $3 Next?

Axie Infinity’s AXS token has surged more than 130% over the past week, reaching $2.88. This move puts AXS above the upper Bollinger Band, with the daily RSI sitting at 83 – both suggesting momentum is stretched. A breakout above $2.95 would mark a shift in structure, while a rejection at this level could trigger a short-term correction.

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New Token Structure and Whale Activity

The rally follows Axie Infinity’s announcement of a revamped reward system introducing bonded AXS (bAXS), a non-transferable version of the token used for in-game features. Converting bAXS back to AXS now involves a variable fee based on player reputation, a change aimed at limiting bot activity and reducing sell pressure.

Lunacians, we are on the verge of a massive evolution in how we secure our digital nation.

bAXS (Bonded AXS) is backed 1:1 by AXS, and designed to keep value circulating within our ecosystem and rewarding our citizens.

This is the start of a transformative year for Axie… pic.twitter.com/rpqAt1DZ1G

— Axie Infinity (@AxieInfinity) January 17, 2026

Trading volumes rose sharply in response, particularly in South Korea, while on-chain data from Santiment shows that large wallets accumulated over 100 million AXS this month.

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Caution Signs Appear Despite Strong Demand

While bullish momentum remains intact, some indicators point to cooling sentiment. Spot trading volume has declined in recent sessions, exchange netflows show moderate outflows, and the funding rate has turned negative, suggesting growing short exposure in the derivatives market. If AXS fails to clear $2.95, support may form near the 23.6% Fibonacci retracement at $2.43.

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Technical Indicators at Overbought Levels

The rally has pushed multiple technical indicators into overbought territory. RSI values above 80 and price movement outside the upper Bollinger Band suggest conditions may be due for consolidation or a pullback. MACD remains positive, but momentum divergence is appearing on shorter timeframes.

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Summary

Axie Infinity’s rally has been driven by structural updates to its token economy and renewed speculative interest. While the price action remains strong, technical indicators suggest limited room for further upside unless buying volume increases. A clean move above $2.95 would open the door for continuation above $3, while failure to hold current levels could shift attention to support zones near $2.43.