Axie Infinity (AXS) is showing early signs of a potential short-term exhaustion pattern on Saturday, as a widely watched technical indicator has issued a potential sell alert, prompting analysts to sound cautionary advice for investors of AXS, which recently experienced a strong price increase.
At the time of writing, AXS is trading at $2.70, down 6% over the last 24 hours, according to data from CoinMarketCap. The token recorded a 24-hour trading volume of approximately $1.06 billion, while its market capitalization stood at $461.67 million. The pullback reflects growing selling pressure after a sharp upward move that had attracted short-term momentum investors.
Despite this recent dip, Axie Infinity still ranks as one of the stronger-performing blockchain gaming tokens in 2026. AXS still rises by approximately 277% year to date, helped by renewed enthusiasm in the play-to-earn space and increased activity in the Axie Infinity ecosystem created by Sky Mavis. Yet, after this prolonged rally, technical indicators now signal that the growth in AXS may soon ease.
Moreover, crypto analyst Ali Martinez stated in an X post that the TD Sequential Indicator has now displayed a sell signal in the AXS daily chart. The TD Sequential Indicator is typically utilized to pinpoint areas where a trend may be exhausted following a long period of consecutive price ascents.
Martinez explained that the current configuration has a higher chance of seeing a period of consolidation or a correction, especially if the price has seen a large percentage increase.
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Adding to the optimistic sentiment, another analyst, CryptoPulse, confirmed that the price action in the AXS token has indeed touched the second take-profit level, or the TP2, as per the previously provided price setup. Since the last announcement by the analyst, the AXS token has appreciated by almost 30% to achieve the projected price.
After this, CryptoPulse recommended that investors book partial profits and readjust their stop-loss positions to their entry point in order to limit their potential losses while still benefiting if the price were to go up.
However, in the short term, Axie Infinity’s price movement will be dependent upon how it can sustain its current support levels in the midst of prevailing conditions in the crypto space. As of the present, a call to be cautious has been made as the momentum has slowed down to a certain extent after a recent surge in value.
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