Whales re-entered Axie Infinity (AXS) during a late-January correction, according to on-chain flows and contemporaneous reporting. The activity followed a 41% rally and occurred alongside technical signals that pointed to a heightened short-term pullback risk.
Data compiled for mid-January showed an initial wave of profit-taking. Between January 13 and January 21, large holders sold roughly 11.2 million AXS — about 4.4% of their holdings — a move described in market reports as early cashing out from the rally phase.
That distribution was followed by renewed buying: from January 22, whales acquired another ~160,000 AXS, and a wider cohort analysis for January 12–22 recorded an aggregate accumulation of 100.56 million tokens.
Price action hit resistance near the $3.00 psychological level and subsequently corrected. Reports noted a sharp 15% pullback from that area and even an intraday decline exceeding 17% within 24 hours.
How high will the price of AXS go?
Technical indicators flagged weakening momentum: the Relative Strength Index (RSI) had entered overbought readings above 70 before diverging as prices made higher highs, while the Money Flow Index (MFI) trended lower between January 17 and 23— a classic sign of fading buying pressure on rallies.
A bearish harami formed around January 18, a pattern that historically preceded significant corrections in AXS. Derivatives metrics added nuance: trading volumes had declined and funding rates turned negative, implying a short-bias among perpetuals despite the ongoing accumulation by large holders. The breach of a reported $2.54 support opened downside targets near $2.20 and $1.98, with some analysts citing a broader retracement window down to roughly $1.238–$1.878.
For traders and treasuries, the episode represented a high-risk entry point priced by selective, large-holder conviction. Whales’ buying during a pullback suggested either long-term conviction or opportunistic accumulation; either interpretation implied elevated volatility in the near term and a need for disciplined risk management.
Investors are now watching upcoming volume and funding-rate dynamics and the market’s response around the $2.54 support level, which will determine whether whale accumulation translates into sustained buying pressure or simply supplies liquidity for further downside moves.
