What’s Been Happening with Axelar
Axelar recently launched its Cobalt upgrade (v1.2.1), which introduced something pretty significant—a fee-burning mechanism. Essentially, gas fees paid in AXL now get sent to a burn address, which means those tokens are permanently removed from circulation. The idea is simple: as more people use the network, more tokens get burned, potentially making the remaining supply more valuable over time.
Beyond the tokenomics shift, Axelar continues expanding its cross-chain connectivity through tools like the Mobius Development Stack and Interchain Amplifier. They’re integrating with major blockchains like Solana, Stellar, and the XRP Ledger, positioning themselves as a serious player in the interoperability space. The utility of AXL is starting to reflect actual network usage rather than just speculation.
But it hasn’t all been smooth sailing. Circle recently acquired Axelar’s core developer team—not the network or token itself—which has left some investors wondering about the project’s long-term direction and governance. There’s also been some exchange activity, like Upbit adjusting token supply figures for Q1, which adds short-term uncertainty around liquidity and dilution. The key question now is whether network growth, integrations, and the burn rate can align to push price higher.
Reading the Technical Indicators
Right now, AXL is trading around 0.05286740 USDT, down roughly 3.85% over the past 24 hours. That puts it below both its 4-hour Simple Moving Average (about 0.05582333) and its 4-hour Exponential Moving Average (around 0.05461624). In plain terms, the short-term trend looks bearish.
The 4-hour Relative Strength Index (RSI) sits at about 43.58. That’s neutral territory, leaning slightly toward oversold but nowhere near extreme levels. There’s room for a modest bounce, but momentum isn’t screaming for a reversal just yet. Meanwhile, the MACD line is negative (around -0.00063293) and sitting below its signal line, which confirms bearish pressure. We’re not seeing any bullish crossover signals at the moment.
Here are the key daily support and resistance levels to watch:
Resistance 1 (R1): ~0.0554 USDT
Resistance 2 (R2): ~0.0579 USDT
Resistance 3 (R3): ~0.0598 USDT
Pivot (daily midpoint): ~0.0535 USDT
Support 1 (S1): ~0.0510 USDT
Support 2 (S2): ~0.0491 USDT
Support 3 (S3): ~0.0466 USDT
Price is currently hovering near the pivot and S1 zone. If support at 0.051 USDT breaks, we could see further downside toward S2 or even S3. These levels will likely dictate where price heads in the near term.
[AXL/USDT price chart with indicators](https://example.com)
Where Price Could Be Headed
Short-Term (Days to Weeks)
If the support around 0.051 USDT doesn’t hold, we’re probably looking at a move down toward 0.0491 USDT (S2), or even as low as 0.0466 USDT (S3). On the flip side, if buyers step in and reclaim the pivot around 0.0535 USDT, we could see price climb back toward 0.0554 USDT (R1) and possibly test 0.0579 USDT (R2).
Medium-Term (Weeks to Months)
The technicals—neutral RSI, bearish MACD, and price sitting below key moving averages—suggest the medium-term outlook is either sideways or mildly bearish. Unless network usage picks up significantly and the burn mechanism starts showing real impact, price will likely consolidate in the 0.045–0.055 USDT range. If Axelar’s integrations gain traction and demand for cross-chain transactions increases, a push toward 0.06 USDT becomes realistic.
Long-Term (3–12 Months)
The Cobalt upgrade and expanding blockchain integrations give Axelar real growth potential. But for that to translate into higher prices, the network needs consistent demand, healthy staking participation, and meaningful usage from DeFi and real-world asset projects. In a bullish scenario where everything clicks, price could gradually move past 0.07–0.08 USDT or higher. A more conservative estimate keeps it in the 0.055–0.065 USDT range. If adoption lags and inflation remains high, we could see a drift back toward 0.03–0.045 USDT.
What to Keep an Eye On:
– Transaction volume across connected chains via GMP and ITS
– The rate at which AXL tokens are burned versus issued (net supply change)
– Institutional or developer adoption through the Interchain Amplifier
– How well support and resistance levels hold under pressure
Axelar is at a pivotal moment. The new tokenomics and expanding integrations offer genuine upside, but the current price action is clearly under pressure. Whether AXL can turn things around depends on how effectively the network executes on usage and burn mechanics. For now, the most likely near-term path is consolidation or a mild recovery—unless something shifts sentiment dramatically. Traders should watch those support levels closely and keep an eye on network activity for early signs of momentum.
