Amp crypto price has plunged and entered a bear market this year, mirroring the performance of most altcoins.
Amp (AMP) dropped to $0.0033 on Tuesday, down by over 77% from its highest level in November last year. Its market cap has slipped from over $965 million to $283 million today.
A potential reason why Amp has plunged is that the total value locked on Flexa has been in a free fall this year. It has dropped to $20.8 million, down from the year-to-date high of $295 million.
Activity on the Flexa Network is critical for Amp, as the token provides the collateralization mechanism that underpins the platform. Flexa is a payments network that integrates with point-of-sale systems to allow merchants to accept crypto. Companies such as Chipotle, GameStop, and Ulta Beauty are among those using it.
Amp serves as collateral to guarantee payments. If a transaction fails or takes too long to settle, staked AMP tokens can be liquidated to ensure merchants receive funds promptly.
On the positive side, on-chain data suggests that whales are still accumulating Amp tokens, potentially betting on a rebound. Addresses holding between 10 million and 100 million AMP now control 10.97 billion tokens, up from 9.95 billion in February, according to Santiment.
Additional data from Nansen shows that the supply of AMP tokens on exchanges has dropped by over 43% in the past 90 days. This is typically seen as a bullish sign, indicating that investors are transferring tokens to private wallets rather than preparing to sell.
Amp crypto price prediction
The daily chart shows that Amp has formed a double-bottom pattern at $0.00306, a bullish setup in technical analysis.
Meanwhile, the Relative Strength Index has rebounded from an oversold reading of 28 in June to the current 44. The Moving Average Convergence Divergence indicator has also flashed 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.
