AXS has pushed off for yet another rally, moving up 50% in the last two days despite a pullback over the last few hours. It’s worth noting that spot volume across exchanges fell dramatically as price consolidated between $40 and $50. However, after setting a new all-time high, AXS’s spot trading volume didn’t keep up with the price trend. Falling volume on higher prices is typically a sign that a trend reversal is in play.
To explain how price goes up without more spot buying, it’s very likely that shorts getting liquidated on AXS perpetuals created “forced buying” and pushed price higher. Spot demand followed thereafter. A large amount of forced buying and selling on perp contracts also point towards trend reversals — and Bybt’s liquidation data says a record number of AXS shorts were liquidated yesterday.