Axie Infinity (AXS) ended its yearlong downtrend and started to pump again after the project decided to cut down on Smooth. Love Potion. If AXS manages to capitalize on this newly established uptrend, the token has the ability to hit $5.
AXS fell into the falling wedge pattern after taking a deep crash in early 2025. Since February 2025, the token has been crashing inside the falling wedge. However, AXS recovered and rose above this indicator following the project decisions to cut down Smooth Love Potion (SLP). SLP is a utility token that is used in the Axie Infinity blockchain game.
The token is part of the game’s play-to-earn economy and serves two main roles:
It rewards gameplay, and it is also needed to breed Axie, which are the game’s pets. By cutting down the rewards, Axies was able to cut down on the constant sell pressure.
By cutting the rewards, it controlled the players’ earnings through Adventure, Arena, and daily quests. And on top of that, many players sold these tokens immediately on exchanges for fiat or other crypto, which created a surge of supply on the exchange, crashing the prices. ,
From recording a value of $4.45 in early 2025, the token crashed to its lowest level of $0.8 in late December. During this crash, the token was never able to rise above the 200-day moving average, which is considered a long-term bullish indicator. But the SLP reward cutting mechanism seems to have worked, as the token is back above this long term indicator.
Although the token has crossed above this major obstacle, establishing a bullish scenario, the market is flagging an overbought condition. The Relative Strength Index (RSI) shows 72 on its scale, and the market is supposed to correct the prices. As such, AXS might crash. But the 200-day MA is acting as the support level, and the bears will have to fight their way to crash the prices below this level.
If the bulls succeed in defending the support level near the 200-day MA, AXS will be able to start its march towards the $5 mark, which is what the community is looking towards.
