Axie Infinity Faces Ongoing Volatility: Major Correction Risks in the Market

Axie Infinity (AXS) is facing a period of uncertainty in the crypto markets, marked by significant fluctuations in value. After recent gains, the token experienced a substantial decline, and the current situation reveals ongoing tension between the optimistic sentiment of some investors and potential short-term correction threats. As of January 31, 2026, AXS is trading at $1.91, down 11.08% in the last 24 hours and with a retracement of 29.18% over the past week, highlighting the downward pressures the asset is enduring.

Volatility and Sentiment Conflict in the Market

Market data analysis suggests that Infinity continues to be a controversial point of interest for the investor community. Although the value increased by 41% during a previous period, the subsequent decline of over 17% created an atmosphere of uncertainty. Momentum indicators and price configurations signal that, despite the current dominance of buyers, withdrawal risks remain significant, especially if the price fails to stabilize at market-desired levels.

Whale Activity: Long-Term Confidence Indicator

In a notable development, high-volume investors (whales) increased their AXS holdings by approximately 160,000 tokens, even amid a recent price decline. This move suggests that, far from being discouraged, major market investors believe in the project’s long-term appreciation potential. Their behavior contrasts with the bearish sentiment in the overall market, indicating a difference in outlook between institutional and retail investors.

Critical Levels and Technical Perspectives

According to technical indicator analysis, $1.91 is a sensitive zone for AXS. Previously, the price was supported by the $2.54 level, but recent developments have led to a breach of this level. Market observers note that if the price fails to stay above certain support levels, the risks of a new correction phase will intensify. Currently, the market is at a crossroads, with buyers and sellers battling for control over the direction Infinity will take in the coming days.

Conclusion: Vigilance Needed

The current situation of Axie Infinity reflects the reality of the crypto market—a constant movement between optimism and distrust. Although whale activity suggests a positive long-term outlook, short-term volatility risks remain present. Investors are closely watching whether AXS will manage to establish a stronger position or if new downward pressures will emerge to test confidence in the Infinity project.