-
AMP price has gained by 11% in the last seven days, with the token hitting fresh monthly highs.
However, the RSI is hinting at a possible reversal as the buying pressure eases.
As a seasoned analyst with years of experience in the cryptospace under my belt, I’ve seen my fair share of market swings and trends. The recent surge in AMP price has caught my attention, but it’s important to remember that every rally must eventually come to an end.
1. At this moment, as reported by CoinMarketCap, the price of AMP cryptocurrency had climbed approximately 11% over the past week and was currently at $0.0043. In the previous 24 hours, the altcoin displayed significant volatility, with its price fluctuating between $0.0042 and $0.0047.
At the moment I’m penning this, the price of AMP has dipped approximately 4%, a potential consequence of sellers cashing out following the recent surge in its value.
According to data from Santiment, when the price peaked at more than $0.0047, it coincided with an increase in trading activity. This significant trading activity might have been driven by sellers who subsequently pushed the price down.
After maintaining significant weekly gains with AMP, is there a possibility for the upward trend to continue, or could we expect the downward trend to prevail instead?
AMP crypto hints at reversal ahead
Since the 5th of August, the price of AMP cryptocurrency has been moving within an upward-sloping channel, marked by successive higher highs and higher lows. This pattern is typically associated with a bullish trend, indicating a consistent and gradual increase in value.
To maintain the upward momentum, it’s crucial for AMP to break through the upper boundary of its rising trendline.
As a researcher examining the four-hour chart, I observe that the price of AMP cryptocurrency is hovering near the bottom of its price channel. If this level is breached, it could signal an extended downtrend, potentially leading to additional drops in the price.
When the Relative Strength Index (RSI) reaches around 60, it typically indicates increased buying activity. However, the RSI has recently shifted direction after approaching the overbought zone, and is now moving downwards. This could be a sign of an upcoming reversal within the upward trending channel.
In the Moving Average Convergence Divergence (MACD), there appears to be an impending bearish cross-over as the main and signal lines are drawing closer together. This convergence suggests a potential shift from a bullish trend towards a bearish one.
If bears grow stronger, AMP will drop to test a key support level at the 0.618 Fibonacci ($0.0040). On the other hand, a resumption of buying activity from traders looking to secure profits could see the 100% Fib level at $0.0049 retested.
Overcoming this resistance, or the top line of the rising channel, will strengthen the bullish argument.
Approximately 8 out of 10 AMP owners currently find themselves in negative returns, according to data from IntoTheBlock. Furthermore, about 1.6 billion AMP tokens are being held at a price point that balances between $0.0041 and $0.0045, meaning these tokens were bought at or near their original cost.
Consequently, a surge in the value of AMP cryptocurrency could prompt traders to sell, aiming to minimize their potential losses.
Read More
- CRV PREDICTION. CRV cryptocurrency
- CTK PREDICTION. CTK cryptocurrency
- The Masked Singer Christmas special line-up – who are the characters?
- ZIG PREDICTION. ZIG cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- BONK trading volume crashed 73% – PEPE, WIF, FLOKI next?
- IMX PREDICTION. IMX cryptocurrency
- HBAR PREDICTION. HBAR cryptocurrency
2024-08-27 00:08