Axie Infinity price forecast has soared sharply after its native token, AXS, rallied by over 200% following the project’s announcement of major changes to how players earn rewards in the game. The altcoin has increased to around $2.75, with a 24-hour trading volume of $681.9 million.

The rally was triggered by an announcement from Axie Infinity co-founder Jeffery “Jihoz” Zirlin, who said the new season would feature a major change. The new plan is to transition AXS rewards into a bonded version called bAXS, which maintains a 1:1 value with AXS. This new token can be used for Axie breeding, evolving, and staking, but cannot be freely traded or transferred, unlike the previous system.

The goal is to reward long-term players through this method while suppressing bot activity. The announcement was made by Jeffery on January 14, and since the announcement token has surged over 200%.

Currently, it is hovering above $2.70 after getting rejected at the $2.90 resistance level. Analysts are watching the local support level around $2.5, as the build-up in supply is signaling short-term profit-booking.

What Is Driving the Axie Infinity (AXS) Rally?

AXS token is moving higher after the team rolled out a major change in the game’s reward system. The new update is aimed at improving the long-term experience of real players in the ecosystem, suppressing bots, and making the in-game economy healthier, which is also driving the bullish Axie Infinity price forecast.

With the launch of the new season on January 21, players no longer earn freely tradable AXS just for playing. Instead, the game now rewards users with bonded AXS (bAXS). This token is 1:1 backed by AXS but remains locked within the ecosystem.

This year we'll be transitioning $AXS rewards in @AxieInfinity into an app token version of AXS (bAXS)

This token will be able to spent in Axie core and staked. The twist is that we'll be integrating Axie reputation, the Axie score, into the selling mechanic.

There will be a… pic.twitter.com/syBwMnFRz8

— Jihoz.ron (@Jihoz_Axie) January 14, 2026

Players can now spend bAXS on core gameplay features like breeding, evolving, ascending Axies, and staking. But the transfer from one account to another is banned for now. This restriction will sharply reduce bot farming while encouraging players who actually engage with the game.

bAXS token holders who want to sell will have to incur a variable fee. This will depend on the Axie score, meaning a high-reputation player will pay a lower fee than a short-term player or someone exploiting the system with bots.

Axie Infinity was launched in 2018 and became a global phenomenon in 2021 after introducing token-based rewards. At its peak, players in some regions were earning meaningful monthly income. Over time, however, slowing user growth, falling token value, and rising bot activity weakened the model.

The new reward structure marks a clear shift in strategy. Instead of chasing short-term payouts, Axie Infinity is rebuilding its economy around sustainability, gameplay value, and long-term player commitment.

Supply Shock in AXS Defying Broader Market Struggle

The broader crypto market is still struggling from the recent sharp downtrend, with Bitcoin trading below $90,000, but the AXS rally has been supported by a supply shock as investors’ interest has renewed in anticipation of fewer new AXS tokens entering the market.

Axie Infinity has distributed more than $23 million worth of AXS tokens to players in 2025. As bAXS is not tradable, unlike AXS, the new reward tokens will not enter the market soon, leading to lower supply and higher demand.

The Axie community also highly appreciated the change, which brought renewed interest in the AXS token. The crypto has been in a continuous downtrend since its ATH in November, and now investors are watching whether the momentum can continue.

Axie Price Forecast: Can it Continue the Bullish Rally?

AXS price has turned sharply bullish after this parabolic rally, and if it sustains above $2, the bullish momentum can be sustained and pave the way for the next target of $3 and $3.50. However, while technical strength remains evident, a short-term profit-taking pullback is imminent in the price.

From a chart perspective, AXS faces a crucial barrier at the $2.95 resistance level, which aligns with the shorter-term supply area. A breakout with strong volume above the resistance could confirm the breakout to new highs and increase the odds of reaching the $3.5 local target. Until then, the move remains bullish, but a highly probable pullback should be the first consideration.

At current price levels, AXS remains bullish, but with the broader market experiencing intense selling pressure, it could face a decision point. If momentum FOMO demand fades in AXS and the price falls below $2, the bullish structure will be invalidated. A dip below $1.5 could erase gains in the coming weeks.