Despite a strong market, the AMP price continues to bleed. Since late July, the crypto market has gained over $1 trillion, but AMP has halved. This is not encouraging for Token holders, and unfortunately, if the weakness persists, it may accelerate.
Like most of the market, AMP Token (AMP) started the year brightly and was up 1,700% year-to-date by May. However, since reaching a record price of $0.1219, AMP has been trending downwards and was 70% lower by July. On the 20th of July, the AMP price started to gain traction again. In the six days that followed, AMP jumped 143%, although the rally was short-lived. On the 26th of July, the price squeezed 10% to a four-week high of $0.0929 before reversing. Almost two months down the line, the Token is trading 47% lower at $0.4868. Furthermore, AMP is sitting on a critical support level, which, if broken, could trigger a wave of liquidation.
The daily chart shows AMP is testing both trend line support and the 200-day moving average at $0.04826. I consider this significant because the previous two tests of the 200 DMA have resulted in material rallies. However, on former occasions, the price never closed below the indicator. Therefore, if it does, it will suggest a breakdown in sentiment. Should that happen, I expect to see follow-through selling targeting the July low at $0.0300. Following that, the May crash low of $0.0255 could follow.
On the flip side, If the AMP price manages to hold the 200-day, it will point to a successful test of its support. In that event, trend line resistance at $0.0520 is the first level to watch, followed by the tightly-bunched 50, and 100-day moving averages between $0.0556 and $0.0562.
For more market insights, follow Elliott on Twitter.