The AMP price has almost doubled after testing the 200-day moving average. However, previous tests have taken the price much higher. So can history repeat?
AMP token is trading at $0.0723, down $0.0028 (-3.81%).
During the sell-off that intensified in the third week of this month, several cryptocurrencies were close to wiping out their 2021 gains. However, even at the 20th of July low of $0.0372, AMP was still up 480% from January 1st.
Furthermore, the rally that followed has lifted the AMP price by 90% and brought the year-to-date return to 1,000%.
As a result, AMP is now the 31st-largest cryptocurrency with a market capitalization of just over $3 billion. This values the project above FTX and is just short of Crypto.com’s $3.14 Billion market cap.
Not to mention the AMP token is only 43% below the May all-time high of $0.1263. Considering the impressive price performance, the bulls will be wondering if a new record price is a possibility.
AMPUSD price forecast
The daily chart highlights the significance of the 200-day moving average.
On the 5th of April, AMP traded down to $0.0118, tagging the important indicator at $0.0119. Within two weeks, the price was 500% higher at $0.0719.
On the 23rd of May, the AMP price again found its way to the support of the 200 DMA. This time, the price reversed its decline from $0.02395, just ahead of the average at $0.0229.
Subsequently, in the three weeks that followed, AMP gained 440% to an ATH high of $0.1263.
During this month’s decline, AMP fell 70% and was again facing the support of the 200 DMA at $0.0374. On the 20th, the token hit an intraday low of $0.0372 before embarking on the latest rally.
Currently, the price has improved by 92% from the 20th. Furthermore, the rise has lifted AMP above the 50 and 100-day averages at $0.0613 and $0.0567, respectively. Therefore, $0.0567 should be viewed as the first level of support.
As long as the token remains above this level, the bulls will be confident of higher prices.
An optimistic price prediction would see AMP token trade higher to the resistance of a rising trend line that links the former ATH’s. Presently, this is seen at $0.1900, around 400% higher than the 200-day moving average. And considering the historical performance, it could be possible.
The positive outlook remains in place as long as the price sustains the 100 DMA. Should AMP lose this support, the immediately bullish view becomes invalid.