amp Token Faces Bearish Trends Amid Market decline
Amp (AMP) has seen a significant drop in value this year, reflecting the broader downturn in the altcoin market.The token hit a low of $0.0033 recently, marking a 77% decrease from its peak in November. Its market cap has also fallen from $965 million to $283 million.
One reason for this decline is the reduced value locked in Flexa, a key platform for Amp. The total value locked in Flexa has plummeted to $20.8 million, down from $295 million earlier.Flexa is a network that lets merchants accept crypto payments. It’s crucial for Amp’s value.
Flexa’s activity is vital for amp. The network connects crypto payments with customary payment systems. Companies like Chipotle adn GameStop use Flexa. As Flexa’s usage drops, Amp’s price suffers. Flexa’s decline affects amp because it uses amp as collateral. If transactions fail or take too long, Amp tokens can be sold to ensure merchants get their money quickly. This drop in Flexa’s usage has hit Amp hard. Fewer transactions mean less demand for Amp.
However, there’s a silver lining. On-chain data shows large investors, or whales, are still buying amp. These whales now hold 10.97 billion tokens,up from 9.95 billion in February. This suggests some big players still see potential in Amp.
Despite the bearish trend, some signs point to a possible recovery. The supply of Amp on exchanges has fallen by 43% in the past three months. This drop could mean investors are moving tokens to personal wallets,not exchanges. This move is frequently enough a good sign, as it shows confidence in the token’s future. Data from Santiment reveals this trend. Whales holding between 10 million and 100 million tokens are accumulating more tokens.This shift could signal a bullish outlook. Fewer tokens on exchanges mean less selling pressure. This could lead to a price rise.
Technical analysis offers hope. The token has formed a double-bottom pattern at $0.00306. This pattern is frequently enough a sign of a price rebound.The Relative Strength Index has risen from 28 in june to 44 now. The Moving Average Convergence Divergence indicator also shows a bullish crossover. if this continues, amp could reach $0.00573, up 70% from current levels. But a dip below $0.0030 could negate this optimism.
Key indicators hint at a potential turnaround. The Relative Strength Index and Moving Average Convergence Divergence show positive signs. If this trend continues, Amp could reach $0.00573,up 70% from current levels. But a dip below $0.0030 could negate this optimism.
Key indicators hint at a potential turnaround. The Relative Strength Index has risen from 28 in June to 44 now. The Moving Average Convergence Divergence indicator also shows a bullish crossover. These indicators suggest a potential bullish reversal. If momentum continues, the next target could be $0.00573, the swing high from May 14, which would represent a gain of about 70% from current levels.However, a drop below the support at $0.0030 would invalidate the bullish thesis.
