Amp price has become embattled as demand for the collateral coin evaporates. The coin crashed to a low of $0.0050, which means it has fallen by more than 88% in the past 12 months. This crash has brought its market cap to about $391 million.
Amp is a blockchain project in the decentralized finance (DeFi) industry. It offers a unique solution that gives investors fast and efficient way to trade. By using Amp’s collateral, uses can gain instant settlement and secure transactions.
As a result, it provides popular coins like USD Coin, ETH, and LINK with instant and verifiable assurance for any real-world application. It does this by collateralizing asset by staking Amp. Once staked to a partition, Amp is then able to collateralize a transfer with the use of collateral pools. By using these decentralized pools, Amp is able to spread the overall risk with smart contract features.
According to its website, there are now more than $110 million worth of funds staked in Fkexa Network. At its peak, Amp had more than $1 billion worth of staked assets in its platform. This partly explains why the Amp price has continued falling in the past few months.
Amp has also declined because of the overall performance of the DeFi industry. Recent data shows the total value locked (TVL) in DeFi has crashed from an all-time high of over $150 billion to about $55 billion.
The daily chart shows that the AMP price has been in a strong freefall in the past few months. During this period, its volume has continued dropping while the coin remains below all moving averages. The Relative Strength Index (RSI) has moved slightly above the oversold level. It also crashed below the important support level at $0.0080, which was the lowest level on June 18.
Therefore, at this stage, the outlook for the coin is still bearish with the next key target level being at $0.0040. A move above the resistance at $0.0060 will invalidate the bearish view.
This post was last modified on Oct 06, 2022, 11:01 BST 11:01