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AMP is a cryptocurrency token on the Flexa blockchain network, whose goal is to facilitate transactions for merchants using digital currency. The idea is to offer an alternative payment system to regular fiat money. While merchants often shy away from using Bitcoin as a method of payment, as large fluctuations in price can mean merchants receive less cash than they bargained for.
The AMP token seeks to solve this problem by offering AMP as collateral in transactions. AMP holders contribute to the system by staking their AMP tokens which allows them to earn rewards. Flexa is mobile-based, so all that the vendor needs is a QR code.
The process allows merchants to receive the amount they require while allowing clients to use digital money to make purchases.
Fundamental AMP Crypto Price Prediction
Let’s be clear, we are not offering any investment advice, and the objective of the article is purely for educational purposes.
The increase in the rate of use of AMP and its price are highly correlated. Clearly, the more AMP is adopted the more likely its price will rise. For AMP to have a higher chance of seeing higher values the adoption of crypto payments must also increase.
This factor seems to have increased slightly over the past two years as one South American country has adopted Bitcoin as legal tender. And we have seen many vendors accept payments in various cryptocurrencies.
As of writing, we have produced a list of merchants who accept cryptocurrencies as payments: The list is not all-inclusive, as so many private merchants and companies do accept Bitcoin and other cryptos. In fact, a survey from HSB shows that 36% of small companies accept cryptocurrencies for payments.
List of well-known companies adopting Crypto.
- Microsoft
- Home Depot – via Flexa
- Starbucks
- Whole Foods – via Spedn app
- Regal Cinemas
- Gamestop
- Jamba Juice
- Baskin-Robbins
- NewEgg
- AT&T
- Burger King
- Virgin Atlantic
- Amazon – through Purse.io
- Express VPN
- AMC Theatres
As you can see the list is extensive, and these are the ones we found for now, not to mention the many SMEs that accept cryptocurrencies.
The demand for AMP crypto will depend greatly on how many vendors and companies adopt crypto payments in their businesses. But their involvement will also depend on how wide the acceptance of cryptocurrencies stretches.
And the participation of institutional players in the adoption of cryptocurrency as an asset class will play a big role. Recently we heard of JP Morgan stating they saw Bitcoin as undervalued by 28%. The news hasn’t had much of an effect on Bitcoin’s price for now.
However, they also mentioned in the same statement that they were changing their preferred alternative asset from real estate to Bitcoin. This type of commitment from a major international bank is good news for Bitcoin and its peers.
Fidelity Investments has already filed a request to set up a fund for crypto investing. For now, the asset manager is facing resistance from the SEC. Although they may find a way to get their crypto fund started at some point.
In the meantime, Fidelity has already launched a crypto fund in Canada which is also eligible for TFSAs and RRSPs, the Canadian equivalent of IRAs and 401(k)s. Interest from the institutional investing world does not create demand for AMP directly. However, it plays a fundamental role in the acceptance of crypto coins as an asset and therefore wider acceptance by the general public.
Technical AMP Crypto Price Prediction
AMP crypto price has not had a very happy ride since its recent appearance in the crypto world. In June 2021 it touched its all-time high at $0.123 and continued with a very bumpy ride throughout 2021. Over those 6 months, we can see from the weekly chart below that AMP price fluctuated greatly with high peaks and shallow troughs.
Source: TradingView
But it’s the beginning of 2022 with the general demise of Bitcoin and most major digital currencies, that sees AMP price fall to current levels around $0.0092. That equals a loss of 92.5% from its peak back last July 2021.
From the above chart, we can see how over the past several weeks the candles are getting smaller. Of course, as the price decreases the points moved for each week will also decrease. But looking at the weekly chart below, with the Y-axis in percentage points, we still see how price movements are shrinking even in percentage terms.
Source: TradingView
A shrinking price range for highs and lows may signal a weakness in the current trend. The idea being there is not enough sentiment in the market to keep pushing for larger price swings as the market stabilizes.
Having said that, the weekly chart still shows a net downtrend, with the first resistance level currently around $0.027, next to the sloping blue line. To consider AMP price may be in a new long-term bull trend the weekly candles would have to close above the sloping blue resistance line.
One candle breaking above the resistance line is an indication of a possible bull trend. You would then need to see a second candle close above and move further north for confirmation.
Short-Term AMP Crypto Price Prediction
We just looked at the technical analysis of AMP price on a long-term chart, and the future doesn’t seem too rosy. Now we are going to evaluate some technical indicators on the short-term day chart. From the chart below we can see how the price action is still well below the Ichimoku cloud, which signals the downtrend as predominant.
However, the blue trend line which started when the AMP price peaked at the top of the Ichimoku cloud is very close to the current price. A break above this resistance line could allow for a retracement towards the lower belly of the Ichimoku cloud.
Source: TradingView
If AMP price were to manage trading into the cloud it would meet more resistance from the black trend line which goes back to its last peak in February 2022. For now, there is only one technical tip that might indicate AMP price may experience a price retracement.
The Elliott Wave principle of successive troughs in a downtrend may have been met. We can count 3 troughs from the AMP price peak in February 2022. Elliott Wave theory suggests that price trends occur in waves. A bull or bear trend has 5 waves in the direction of the trend, and 3 waves in the opposite diction.
A break of the blue resistance line may confirm the Elliot wave theory and give rise to corrective price action. There is certainly plenty of room for a significantly large price retracement. The first resistance after the blue line is the red Base Line of the Ichimoku cloud at $0.01142.
After that, the next resistance would be at the lower belly of the Ichimoku cloud. And a very strong resistance area would be met at the top of the belly where the black resistance line also passes.
Overall AMP Crypto Price Prediction
Technically speaking from a long-term viewpoint there is not much on the chart that might indicate a major reversal of the main bear trend AMP price is experiencing. The only factor that stands out is that weekly price ranges are getting small.
This is a shorter price range in percentage terms, compared to the first several months of AMP trading. It may mean that there is a bottom forming as more traders and investors get to know the AMP token and its usefulness. But for now, the long-term downtrend is intact, and any price reversals should be considered as corrections only.
However, from the day chart, we can see that the AMP price may be running out of steam. And crossing through the blue resistance line would take very little in terms of upward price action. There are two resistance levels on the way, but the retracement could go as high as $0.017 on the top side of the cloud.
Bottom line
Trading and investing in any crypto assets are very high-risk activities. True, that with the high risk comes a high reward. However, always consider that you may lose all your cash when investing in risky assets, and seek advice from your financial advisor before committing money to an investment.
You may want to include your crypto holding in a retirement account such as a self-directed IRA to take advantage of a tax-enhance environment for your investments. If you are looking for a top-tier self-directed IRA company, you can read a review of our top picks.
Gino D'Alessio is a Broker/Dealer with over twenty years experience in various OTC markets such as Bonds, FX and Derivatives. Currently a Financial Markets and Investments Writer & Analyst
