AMP Price Prediction: Will it Drop 58%?
After rising +20% in 2023, AMP token has dropped more than 4% only in the first month of 2024. While, fundamentals are suggesting a growth potential for AMP coin, the technical indicators are picturing opposite scenario. Let us take a look at both cases in this AMP price Prediction.
Table of Contents
What is AMP
AMP token is build on Ethereum and it is used to make transactions faster on Flexa, a crypto payment network. With AMP, merchants can accept cryptocurrency payments quickly, even before the blockchain is fully confirmed.
AMP is not just for payments; it also rewards people who stake it and helps in making decisions for the Amp community.
Flexa provides a framework for payments through an app called SPEDN. The Amp token is like a reward for users, and the total supply is 100 billion. Flexa Payment system is used in more than 41,000 locations in only US and Canada, showing its popularity as a crypto payment platform. Many big brands like Shopify, GameStop, Woo Commerce and NCR supports crypto payments via Flexa.
Strategic Staking: Three Whales Propel AMP Tokens onto Flexa Network
Today, Three big investors, known as “whales,” staked over $1 million each in AMP tokens at the same time. They took out a substantial amount, about 970 million AMP tokens worth $3.5 million, from Coinbase and then staked them on the Flexa network.
Staking means locking up a certain amount of cryptocurrency to help a blockchain network function better and, in return, getting rewards.
The fact that these three major investors withdrew a significant sum from Coinbase at the same time to stake it on Flexa suggests they made a planned move. This could be because they believe in Flexa’s potential, expect to earn rewards through staking, or want to actively take part in governing and securing the Flexa system.
The coordinated action might also show that these big investors share a positive view or agreement about the future of the AMP token on the Flexa network. Investors often pay attention to such moves by major holders because they can indicate confidence in a specific platform, network, or token.
This move could impact how the AMP token functions and shows positive sentiments or expectations within the cryptocurrency community.
See related crypto forecast for FTM
AMP Price Prediction: Double Top Pattern Suggests Potential Downtrend Ahead
The daily price chart of AMP/USDT shows signs of potential downfall ahead according to the Double Top Pattern. First top was formed on 6th December 2023 at 0.004728 after rising continously for about one and half month.
After the first top formation, the prices dropped down and formed a neckline at 0.003033. From here, the price surged again and formed a second top at the same level of 0.004728. Now the prices have started to decline again following the Double Top Pattern.
Currently, the prices are trading at 0.003490 and reached the 50 EMA line (blue). The outlook suggests that AMP prices might break below the 50 EMA line soon and spark the bearish trend. Furthermore, the Awesome Oscillator (AO) histograms have also turned red, suggesting selling pressure.
If prices keep on moving under the Double Top Pattern, they might face initial support at the neckline. Any break and closing below the neckline at 0.003033 would spark bearish trend. The next support from here lies at 0.002476. Any break and closing below this level could further drag prices down towards 0.001306. This level represents around -58% loss from the current price level.
On the flip side
On the other hand, if prices find support at 50 EMA line, they might rise up. The initial resistance lies at 0.003851. Any break and closing above this level could further push the AMP prices up towards double top level. However, this case is only possible if prices defy this bearish AMP price prediction.
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