AXS Price Surge Hides Weakening Momentum as Volume Declines
Axie Infinity's AXS token has seen a significant price surge over the past day, gaining 13% in value. However, beneath this surface-level success lies a concerning trend: trading volume has dropped by 5%, to $146 million, as reported on CoinMarketCap.
This disparity between rising prices and declining volume suggests that the current bullish momentum is weak. In the Spot market, traders have been selling more AXS than they're accumulating, with a net flow of $1.23 million into exchanges. This indicates that the price surge may be driven by profit-taking rather than new investment.
The perpetual market has also shown signs of selling pressure, with a strong positioning from short traders and an Open Interest-Weighted Funding Rate turned significantly negative at -0.0565%. This signals that the majority of positions in AXS's perpetual market are short positions, which could influence the market direction for AXS.
Despite this weakness, market sentiment remains bullish, with a surge in mindshare to 26% and a sentiment reading of 5.46 on the chart. When sentiment is high, it can induce FOMO buying and add to an asset's overall performance.