AXS Price Surge Falters as Volume Declines and Selling Pressure Rises

AXS, the token behind the popular blockchain game Axie Infinity, has seen a 13% price surge in the past 24 hours, according to data from CoinMarketCap. However, concerns are growing about the sustainability of this rally, as the trading volume has declined by 5% to $146 million.

The relationship between price and volume is often used to predict future price direction, and in this case, the decline in volume suggests that the current bullish momentum is weak. The spot and perpetual markets are also showing signs of rising selling pressure, with a sell-off of $8.42 million in the spot market and a strong positioning from short traders in the perpetual market.

Despite these concerns, the market sentiment remains bullish, with a surge in mindshare to 26% and a sentiment reading of 5.46, which suggests that most investors are bullish. However, the negative funding rates in the perpetual market could shape AXS's next price move as traders assess the sustainability of the rally.