Axie Infinity jumps 40% with heavy volume but faces resistance near $1.60 amid rising leverage and short pressure.

Axie Infinity (AXS) surged 40% to $1.57 on a 286% volume increase, signaling strong buyer interest after a period of low activity near $1.05. The price approached a key resistance at $1.60, with technical indicators showing overbought conditions and increased leverage as open interest doubled. Despite the rally, short sellers remain active, keeping funding rates negative and creating potential for a short squeeze if $1.60 is breached. The critical resistance level could either lead to a bullish breakout or a pullback, with volatility expected to rise due to high leverage and mixed market sentiment.