This is the beginning of a series of articles highlighting select cryptocurrencies and tokens that have piqued my interest in the past few months with regard to use cases as well as expected growth in value. Each article will contain an overview, technical analysis of the chart, and price forecast (week, month, three-month). The first is a personal favorite of mine that is currently moving and should continue to do so.
AMP TOKEN: OVERVIEW
Per AMP's website, AMP is a universal token used for collateral to ensure the smooth flow of transactions. It is ERC20-compatible, with fixed-supply, and is immutable. While a transaction is in process, the AMP token is held in escrow by a collateral manager (smart contract) and is released when the transaction completes. Thus, AMP speeds up transactions such as payments, while providing two unique attributes for security and use value. First, collateral managers serve as escrow accounts with specific parameters in specific cases. Second, token partitions allow for more flexibility in the smart contract, allowing users to stake tokens without actually transferring them to the smart contract, which generates security with regard to custody of the tokens. AMP can be utilized by payment networks like Flexa, by individuals, or by DeFi platforms.
The value of this cannot be understated. Quick, efficient, and secure transactions are essential to the proliferation of adoption of cryptocurrencies as forms of payment by merchants. Tokens that act as stable collateral allowing for rapid execution of transactions are going to increase in value as their efficacy is demonstrated. AMP is designed to appreciate in value directly because of its utility.
AMP TOKEN: CHART TECHNICAL ANALYSIS
At the moment of writing this, AMP's price is $.0589, and this price is up 15% over the past week, and 24% over the past month. Currently, the RSI (Relative Strength Index) is in the low 40s, signifying room for the price to continue climbing. The current price is a support level that held for the first half of November after AMP's last price move up to $.081. Price levels of interest upon a bounce back up toward the eight-cent level and beyond are: .0625, .0648, .0663, .0698, .0733, .0771, and .0811. Getting support between .07 and .08 will be vital for breaking upward to the all-time high of 0.1211 on June 12 this year. AMP has had consistent higher lows all year while running into resistance around .08.
AMP TOKEN: FORECAST
I do think AMP is going to be a leader in its domain. I expect continued movement for AMP and for it to start testing above .07 again within the next week. Levelling up occurs if it can then stabilize above .07. The last run saw profit-taking after the price hovered over .07, so I think that will be less of an issue for this run. A new 90-day high should be reached within a month, surpassing the .081 mark and then AMP will be comfortable at the 1.618 Fibonacci from its last stagnant hovering level at a nickel. My three-month prediction is that there will be new resistance built up at .10, so somewhere around a dime for late February is where I will put its price at.
The long-term prospects are immense, and it will not truly take off until merchants adopt cryptocurrencies on a broader scale, but the chart is ready to explode when that time comes.