- The recent launch of mXRP has sparked fresh optimism for Axelar’s (AXL) recovery, as it has recorded an 11% uptick in price
- Despite the bounce, AXL remains in a broader bearish pattern, trading below major moving averages.
- The new mXRP product offers up to 8% yield for XRP holders, with added DeFi opportunities.
The Axelar token (AXL) registered a welcome rebound after weeks of pressure, climbing 11% within a single day as traders reacted to the introduction of mXRP, a new yield-focused product for XRP holders. This development briefly pushed AXL to $0.31 earlier today.
The bounce comes during a wider downturn across the crypto market, which has left Bitcoin testing multi-week lows and dragged sentiment down. Yet, Axelar’s partnership with the XRP Ledger through mXRP has given the project fresh exposure, igniting discussions about whether this recovery has staying power or if it is just another temporary rally.
Axelar Price Struggles Under Bearish Pressure Despite Rising Trading Activity and Renewed Investor Interest
In the past few months, AXL’s chart has not painted a flattering picture, with the token sliding nearly 60% below its all-time high set in March 2024. Even though the recent uptick is notable, the token still sits 12% below last week’s peak.
Daily trading activity, however, has shown encouraging signs, with more than $23 million worth of AXL changing hands, almost double the previous day’s tally. This surge in volume underlines that the market still has an appetite for the token whenever newsworthy developments surface.
The market cap stands at around $317 million, modest by current crypto standards, but reflective of a project that still holds potential if momentum builds. Analysts note that Axelar remains firmly under bearish control from a technical perspective, as all major moving averages are stacked against it.
Unveiling mXRP Brings Yield Potential and DeFi Expansion That Could Spark New Utility for XRP
The main source of optimism came from Monday’s announcement that Axelar had joined forces with Midas to roll out mXRP. This product lets XRP holders lock up their coins and earn up to 8% yield while also connecting to decentralized finance platforms that can push rewards beyond 10% annually. In simple terms, it creates an income-generating option for an asset that has often been criticized for sitting idle. This could reshape how XRP is viewed, making it more attractive to long-term holders who want consistent returns rather than just price speculation.
Midas co-founder Dennis Dinkelmeyer stressed that the model is built to bring accountability and transparency while providing stronger returns than traditional savings products tied to XRP. He also highlighted that the earnings cycle feeds directly back into XRP demand, since payouts are converted into XRP and distributed to participants. This mechanism could create a steady loop of buying pressure that supports XRP’s value while rewarding those who take part.
The timing of mXRP’s debut also adds another layer of significance. Just a week earlier, the U.S. market saw the launch of the REX-Osprey XRP exchange-traded fund (ETF), which raked in $24 million within 90 minutes of opening. By the end of its first day, it had reached $31 million in trading volume, a strong signal of investor appetite for XRP-related products. When combined with mXRP’s structured yield offering, it suggests a clear effort to broaden the asset’s appeal beyond short-term traders and into the hands of those seeking reliable returns.
AXL Outlook Remains Shaky as Broader Crypto Market Weakness Clouds the Recovery Narrative
Despite these encouraging headlines, Axelar’s chart is still flashing caution. The Relative Strength Index, sitting at 47, shows the token is edging toward oversold territory but not yet signaling a strong reversal. For traders, this means AXL could enjoy short-lived bursts of optimism without necessarily breaking free from its bearish pattern. Much will depend on whether the buzz around mXRP translates into sustained buying interest or if excitement fades as quickly as it arrived.
Meanwhile, the wider market downturn cannot be ignored. Bitcoin’s slip to multi-week lows has already shaved significant value off the total crypto market, which dropped 2.5% in a single day to stand at $3.9 trillion. In this climate, any token attempting a rebound faces extra hurdles, as broader sentiment drags against upward momentum. Axelar’s challenge, therefore, lies not just in convincing its own community but in overcoming the weight of a sluggish market that continues to lean bearish.
