Over the past few months, Amp [AMP] has witnessed a remarkable 210% increase from its recent lows, reflecting the overall positive trend in the alternative cryptocurrency market.
A well-known cryptocurrency analyst, CJ Bennet, has predicted that this altcoin could surpass its previous peak of $0.09 in 2021 due to its solid underlying fundamentals and upward momentum. This potential surge could result in a gain of more than 600%.
Now, the question arises: What are the key short-term targets that could indicate a sustained upward trend for this altcoin?
Price Levels of AMP Token
One crucial level that the AMP token needs to reclaim and strengthen on the price charts is the early 2024 high of $0.024. A decisive breakthrough at this level could pave the way for AMP to target $0.05 initially and eventually reach $0.9, its previous cycle high.
Currently, the short-term obstacle for bulls to overcome is the 50% Fib level at $0.01 before pushing towards $0.024.
Despite these challenges, prominent bullish signals from technical indicators indicate that the uptrend may persist. Notably, the altcoin has been experiencing significant capital inflows since October, as evidenced by the increasing CMF (Chaikin Money Flow).
Additionally, the buying pressure has been robust, as highlighted by the RSI entering the overbought zone. However, this overbought status may also serve as a cautionary signal for a potential price reversal.
Majority of AMP Holders at Loss
Currently, approximately 60% (58K addresses) of AMP investors are facing losses and may prefer to wait until they break even or turn a profit before selling their holdings. If these holders choose to maintain their positions, AMP’s price could surge further. However, their decision to sell at a loss could impede the ongoing uptrend.
Conversely, short-term holders who purchased the token within the last 30 days have witnessed a 45% increase in unrealized profits. Should they decide to cash in their gains, it might disrupt the current upward trajectory of AMP.
Moreover, there has been a notable rise in whale interest, as evidenced by a surge in whale transactions (depicted in blue), coinciding with an uptick in supply on exchanges (representing sell pressure in yellow).
If the selling pressure intensifies on centralized exchanges, it may hinder AMP’s potential for further upside movement. Therefore, closely monitoring these developments is crucial to assess the sustainability of the current rally.