Amp Crypto Slumps, but Here's why the Token Might Recover
Rebounding Prospects for Amp Crypto: Examination of the Top 3 Factors Contributing to Price Recovery Following a 40% Plunge
Take a look at Amp's crypto price crash – down over 40% since its peak in May, and nearly 80% from its 2024 high! This week, the Amp token plummeted to a mere $0.00293, its lowest point since April. With a current market cap of $286 million, it's a far cry from its all-time high of $3.5 billion. But doom and gloom isn't the full story. Here are three reasons why Amp might bounce back.
Double-bottom Pattern Points to Potential Rebound
First things first: Amp has exhibited a double-bottom pattern on its daily chart. What does this mean for you, the investor? Well, this pattern suggests a possible price increase will happen soon.
The double-bottom pattern has two distinct lows (our current $0.0029 being one of them) and a neckline, in this case at $0.00578. By subtracting the lower side from the neckline, we find the pattern's height as $0.00288. Adding this figure to the neckline gives a potential price target of $0.0086 – a jump of 155% from the current level!
Whales Are Buying Amp Like Hotcakes
Secondly, whales, those big-time investors with deep pockets, are interested in Amp. They're actively acquiring the tokens, signaling a belief that the price will recover.
The rationale for the accumulation is simple: Amp is extensively undervalued. This is evident through the MVRV ratio, a measure that has plunged to -1.78. Generally, MVRV ratios below 1 indicate a token is trading at a discount.
By analyzing the number of tokens held by wallets, we can see that wallets with 100,000 to 1 million AMP boosted their holdings to 1.1 billion from the year-to-date low of 1.05 billion. Similarly, whales with 1 million to 10 million tokens now hold over 1.97 billion coins, and those with 10 million to 100 million tokens now hold 10.7 billion.
Exchanges Are Keeping Coins Close to Their Chests
Here's another sign that Amp investors aren't ditching their holdings even when the price drops: the exchange balance has been on a steady decline. Data from Nansen shows that exchange balances have dropped to 15.35 billion tokens, a 15% decrease in the last 30 days and a 20% reduction in the last 90. Back in April, there were nearly 20 billion AMP on exchanges.
In conclusion, the strong technical signals, reduced exchange supply, and increased whale accumulation all point to a potential Amp rebound.
- Despite the recent price crash of Amp token, a double-bottom pattern on its daily chart suggests a possible price increase, with a potential target of $0.0086, which is a jump of 155% from the current level.
- Whales, large-scale investors, are showing interest in Amp by actively acquiring tokens, indicating a belief that the price will recover, as the MVRV ratio, a measure of undervaluation, has plunged to -1.78.
- The exchange balance for Amp tokens has been declining, with a 15% decrease in the last 30 days and a 20% reduction in the last 90, demonstrating that investors aren't rushing to sell their holdings even when the price drops.
- In the realm of cryptocurrency finance, Amp's recent price slump, coupled with the strong technical signals, reduced exchange supply, and increased whale accumulation, could lead to a potential recovery of the token, making it an attractive option for investors looking to diversify their portfolios.
