Axie Infinity at Risk: Short-Term Analysis Amid Bearish Pressure

Axie Infinity (AXS) faces a complex short-term scenario, where erratic price movements reflect a fundamental tension between different market participants. After experiencing a 41% rally, the token has suffered a decline of over 17%, currently trading at $1.92 according to data from January 31, 2026. This volatility is not accidental: it exposes the inherent frictions between the optimism of large holders and the bearish pressure dominating short-term operations.

The Whale Paradox: Challenging Accumulation

The most intriguing aspect of the current landscape is the contradictory behavior of institutional investors. Despite the recent price drop, whales have increased their positions by approximately 160,000 AXS tokens, demonstrating confidence in the project’s long-term potential. This accumulation occurs in a context where the price has fallen 9.30% in the last 24 hours, revealing a decoupling between the strategy of large investors and the immediate market direction. The number of active addresses remains significant at 76,087 holders, suggesting that the community remains broad but fragmented in its short-term expectations.

Critical Levels in the Short Term: Support at $2.54 Under Threat

AXS’s short-term stability now depends on crucial technical factors. The support level at $2.54, which had served as a containment point in previous analyses, is being severely challenged by the current drop to $1.92. According to technical assessments, if the price fails to recover and stay above this critical level, a more pronounced correction could materialize. Momentum indicators show weakness, although buyers still exert some control over price action at these depressed levels.

The Battle of Sentiments: Structural Optimism vs. Short-Term Reality

The Axie Infinity landscape reflects a clear duality. On one hand, whale accumulation suggests that sophisticated traders see opportunities in the current context. On the other hand, sustained volatility and recent retracement indicate that short-term bearish pressures continue to prevail. This situation highlights the temporal gap between those operating with a medium- to long-term horizon and those responding to immediate market movements, creating a scenario where both forces struggle to determine the asset’s direction.