Axie Infinity's native token AXS surged over 50% in the past 24 hours, driven by market enthusiasm and reflecting new trends in the Web3 gaming ecosystem.

From an ecological perspective, this upward trend is influenced by several factors. First, the GameFi sector is experiencing a recovery phase. As a leading project in this space, AXS is guiding the overall movement of gaming tokens through strong ecosystem expansion and new strategic partnerships. The launch of new products like Atia's Legacy, along with continuous innovation from the Sky Mavis team, has reignited market interest in Web3 gaming. Second, there have been adjustments in token supply. The suspension of SLP issuance and the introduction of the bAXS incentive plan are measures to alleviate selling pressure and encourage long-term holding by players.

From a technical standpoint, the current trend remains bullish. The 7-day moving average is above the 25-day and 99-day moving averages, establishing an upward trend. This alignment typically indicates ongoing momentum in technical analysis. However, there is a point to watch—signs of extreme overbought conditions. The RSI indicator has entered the overbought zone due to this rapid increase of over 50 points, suggesting potential for a correction or profit-taking pressure in the near term.

Risks should not be overlooked. The MACD histogram recently shifted from positive to negative, indicating that bullish momentum has slowed after a significant rise. More critically, volume signals have changed. Although overall trading activity remains active, there are signs of volume decline on an hourly basis, and funds are gradually flowing out. This divergence in volume often signals a possible reversal in technical analysis.

In summary, this wave of AXS price action indeed reflects positive developments in the GameFi ecosystem, but the rapid increase also accumulates short-term risks. Whether the price can stabilize at this level depends on whether new buying interest can step in to absorb profit-taking.