Axie Infinity (AXS) is back in the news after turning bullish amid a bear market. According to CoinGecko data, AXS’s price has rallied 7.8% in the last 24 hours, 130.2% in the last week, 175.4% in the 14-day charts, and 209.5% over the previous month. AXS is currently one of the best-performing cryptocurrencies in the market. Let’s discuss if Axie Infinity’s (AXS) price will continue its rally or will the asset face a price correction soon.
Can Axie Continue Its Price Rally, Or Will It Crash Again?
Axie Infinity (AXS) saw a massive rally during the 2021 bull run. The asset climbed to an all-time high of $164.90 in early November 2021. However, since its 2021 peak, AXS’s price has fallen by more than 98%. AXS’s crash came amid a dip in the demand for NFT projects. NFTs saw a massive surge in popularity in 2021-2022. However, since then, the sector has faced a massive exodus.
Axie Infinity’s (AXS) latest price rally comes after the project announced a new reward system. The new system is aimed at reducing bots while replacing tradable AXS rewards with non-transferable bAXS (bonded AXS) tokens.
While Axie Infinity’s price rally is commendable, there is a high chance that the asset will face a correction soon. The larger crypto market is still quite weak, and bears seem to be in control. AXS’s sudden upswing is most probably due to traders and investors taking advantage of the new reward system announcement amid investor FOMO. Given the larger bearish market environment, AXS will likely see a correction soon.
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Moreover, NFT-based projects have taken a backseat over the last few years. The trend is unlikely to change during a bear market. Axie Infinity (AXS) may see a sudden price dip over the coming days.