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AXS, the native crypto asset of the Axie Infinity Game, experienced a sharp increase, increasing by more than 20% in a matter of minutes.
As prices rose sharply, AXS created a big daily green candlestick with a long upside wick. AXS soared from $4.22 to $5.15 within an hour, gaining nearly 22%.
At the time of writing, some of the gains had slowed, but AXS was still up 9.37% in the previous 24 hours to $4.61.
On Sept. 11, AXS began a rise after reaching lows last seen in June 2021, falling to $4.059. As its daily RSI went below 30 to hit 21, AXS confirmed oversold conditions, triggering a comeback.
The gaming token consolidated on the rebound that was initiated, subsequently rallying for two consecutive days. The rally accelerated with a sharp spike to highs of $5.15 in today's trading session.
The exact reason for the rise remains unknown, as a look through AXS's official X account finds no big announcement or upgrade that might have necessitated the price spike. However, as it stands, it seems the rise was buoyed technically.
The most likely explanation for the price surge might be an unexpected short squeeze, which is a rapid increase in the price, owing primarily to excessive short selling rather than underlying fundamentals.
This is apparent in the fact that the surprise move sparked a significant amount of short liquidation. The last four hours saw $1.41 million worth of Axie Infinity liquidated, of which short positions accounted for a larger chunk at $798,420.
The sudden price move also triggered a large increase in trading volumes as traders jumped into the market to capture gains. In the last 24 hours, AXS trading volume has increased by 343%, with over $100 million traded.