Ampleforth Technical Analysis: AMPL/USD down 80% in the last 4 days
- AMPL/USD peaked at $4.07 after a massive rally.
- The digital asset is down 86% from its all-time high but this was expected due to AMPL’s mechanism.
Ampleforth was one of the best performing altcoins in the market with a massive increase in market capitalization thanks to its unique design. The supply of AMPL is actually ‘elastic’ which means it can expand or contract based on demand. The mission of the protocol is to reduce volatility but AMPL is not a stablecoin.
AMPL/USD daily chart
Obviously, the token is crashing heavily, however, technical analysis doesn’t work in the same way for AMPL as its supply changes all the time. The daily RSI is oversold and indicates that AMPL is ready for a bounce.
AMPL is currently trading at $0.79, its lowest point since March 2020, however, the overall trading volume is significantly higher now.
When the price is high wallet balances automatically increase. When the price is low wallet balances automatically decrease. This supply adjustment operation happens once per day and is called a rebase.
Author
Lorenzo Stroe
Independent Analyst
Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.
