Axelar Sees 19% Bounce as Bearish Structure Still Controls the Trend

• Axelar bounced 19%, but higher timeframe bearish structure remains intact.

• Rising volume and OBV signal demand, yet resistance continues to cap upside.

• Consolidation likely before any sustainable recovery attempt emerges.

Axelar — AXL, pushed back into focus after a sharp move reignited trader interest. A sudden surge in trading volume combined with a fast price rebound created excitement across lower timeframes. At first glance, momentum looked convincing. However, deeper market signals told a more cautious story. Short-term strength met firm resistance from the broader trend, leaving Axelar stuck between hope and hesitation. Price responded with a nineteen point eight percent rally on Sunday, January twenty fifth.

Axelar [AXL]: 19% rally meets bearish market structure – Here’s what’s next! https://t.co/fAhrmkojrk

— AMBCrypto (@CryptoAmb) January 26, 2026

Strong Volume Surge Meets Higher Timeframe Resistance

The daily chart already showed a bearish structure before the rally began. The sharp selloff on January twentieth pushed the price below zero point zero six six. That breakdown confirmed bearish continuation on higher timeframes. Although buyers stepped in later, the broader structure did not reset. During the rebound, price climbed toward the zero point zero eight three region. This level acted as a dense overhead supply zone. Daily candles repeatedly failed to close above that area.

Such behavior often reflects distribution rather than accumulation. Still, the rejection does not guarantee an immediate collapse. Some indicators offered signs of underlying demand. On Balance Volume reached fresh highs above mid December levels. This development suggested sustained participation during the rebound. The daily RSI also recovered and stayed above the neutral fifty level. These signals supported the case for cautious optimism.

Why Bears Still Hold the Upper Hand

Despite the bounce, higher timeframe conditions remain unfavorable. Moving averages have not produced a bullish crossover. Price also trades below key resistance zones. These elements keep downside risk active and remind traders that structure matters. Lower timeframe data reinforces that caution. Fibonacci retracement levels show price drifting toward deeper pullback zones. The seventy eight point six percent retracement sits near zero point zero seven two.

Price currently threatens that level. A clean break lower would likely attract renewed selling pressure. Momentum indicators on the hourly chart have weakened. The RSI has slipped below the neutral fifty mark. Price also trades below the fifty period moving average. These signals often appear before short-term bearish phases. Open Interest expanded sharply during the weekend rally. Such rapid increases usually reflect aggressive positioning.

These moves rarely hold without consolidation. A cooling phase could help stabilize conditions. For now, patience appears justified. A consolidation range between zero point zero six five and zero point zero seven two looks likely. That zone could allow buyers to rebuild strength gradually. A steady recovery from that area would offer cleaner entries. A decisive drop below zero point zero six five would confirm bearish continuation and shift focus back to risk control.