GameFi Tokens Lead 2026 Rally — One Just Surged 370%

Meme coins stole the show in early 2026 when the sector surged 23% in a single week, adding $8 billion and pushing the market cap to $47.7 billion. PEPE led with a 65% weekly gain, DOGE climbed 20%, and SHIB followed at nearly 20%. But while meme tokens cooled off, the spotlight quietly shifted — and GameFi tokens have been one of the steadiest performing sectors for two months running now.

Axie Infinity is up 72% year-to-date. And then there is Power Protocol (POWER), a GameFi token that surged almost 100% over the past 24 hours, crossing $2.00, with gains of 370% in a week. Even after a slight pullback, most of those gains remain intact. When a token moves this aggressively while the rest of the market sits muted, it deserves a closer look.

Why Is Power Protocol (POWER) Surging?

Power Protocol is a blockchain infrastructure layer that unifies fragmented Web3 gaming economies under a single token. Its flagship product, Fableborne, a mobile-first action RPG from UK-based Pixion Games, has attracted over 400,000 beta players, peaked at 108,000 daily active users, and generated $21.5 million in NFT presale revenue before the token even launched.

The immediate catalyst traces to February 24, when BITKRAFT Ventures, a respected gaming-focused VC, announced a $3 million investment, pushing total ecosystem funding to $15.5 million.

Since the BITKRAFT announcement, this GameFi token has exploded over 610% to its February 26 peak. For context, POWER launched on December 5, 2025, at $0.08 — making cumulative gains exceed 2,000%.

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But the technicals are now flashing a critical warning.

Bearish Divergence, Whale Selling, and $15 Million in Short Liquidations

On the 4-hour chart, POWER’s consolidation resembles a bull flag — typically a bullish continuation pattern. However, between February 25 and February 27, prices printed a higher high while the Relative Strength Index (RSI), a momentum indicator, printed a lower high.

This is textbook bearish divergence. In buyer-seller terms, fewer aggressive buyers are stepping in at these elevated levels, even as prices keep climbing. Even on smaller timeframes, this kind of divergence can trigger a sizable pullback.

On-chain data deepens the concern. Whales holding between 1 million and 10 million POWER have been aggressively offloading since February 14. Their holdings dropped from approximately 14.66 million to just 7.2 million — a near 50% reduction.

Additionally, exchange net flow data shows buying pressure fading fast — outflows dropped from 2.74 million tokens on February 24 to just 14,800 currently, a collapse of over 99%. If the price surged without fresh buyers stepping in, what actually fueled the move?

The liquidation data answers that. Over the past 24 hours, short liquidations totaled $15.62 million versus just $2.77 million in long liquidations — a ratio of nearly 6 to 1.

This GameFi token’s rally was significantly amplified by a cascading short squeeze, possibly led by a sentiment shift post BITKRAFT investment rather than organic spot demand.

Can this GameFi Token Still Bounce? What Volume and Bigger Whales Reveal

Since peaking above $2.15 on February 27, POWER has already corrected roughly 20%. The divergence is playing out. But a crucial detail keeps the bullish case alive.

The drop was accompanied by notably low red volume bars, meaning selling conviction is weak. Rather than heavy distribution, the decline appears driven partly by long liquidations unwinding — not a wave of sellers dumping positions. When prices fall on low volume, it often signals exhaustion of the move down rather than the start of deeper capitulation.

More importantly, a separate cohort of larger whales — those holding between 10 million and 100 million POWER — have been net buyers throughout the rally. Their stash has grown from 346.28 million tokens in early February to 402.92 million currently. This accumulation by the biggest wallets provides a structural floor that smaller whale selling has not been able to break.

Based on Fibonacci extension levels, this GameFi token needs a clean daily close above $2.09 to reclaim bullish momentum. If recaptured, next resistance targets sit at $2.88, followed by $3.66 if the broader GameFi narrative holds. A daily close below $1.61 weakens this outlook considerably, and a break under $1.08 could invalidate the bullish structure entirely.

Power Protocol sits at the intersection of a genuine GameFi revival, strong VC backing, and highly leveraged market mechanics.

Whether the next move is up or down likely depends on how the broader altcoin rotation plays out — and whether the biggest wallets keep holding their ground.