Despite Bear Market AMP Token SurgedDespite Bitcoin was bearish AMP turned bullish:
The AMP token was following Bitcoin’s move like all other altcoins and cryptocurrencies. But if we take a look at the weekly time frame chart, then after the candle stick which was started on the 17th of May the price action of Bitcoin was moving sideways but on the other hand the AMP token was extremely bullish and surged more than 350%.
Different support and resistance levels:
On the daily time frame chart, the price line of AMP token has different support and resistance levels. Previously $0.062 and $0.075 had been working as a major resistance levels. After rejection, the priceline made turned strong bullish and finally broke out all the resistance levels and found a final resistance at $0.115. Now after being rejected by the $0.115 resistance level the price action has broken down the previous resistances which were now working as supports at $0.075 and $0.062. Now the priceline has finally found strong support at $0.052 and moving above this level.
Broadening formation:
On the weekly time frame chart, it can be easily observed that the price line of AMP token has formed a broadening formation. Every time after getting bounced by the support of this pattern the price action moves up and forms higher than the previous high. This time the price line after being rejected by the resistance, is moving down and there is a distance between the support and the price line AMP token. Therefore, the price action can move a little bit more down for the completion of the bearish move to have another bounce from the support.
Big bullish Cypher pattern:
On the weekly time frame chart, the price action of AMP is forming another bullish Cypher pattern. There is also 25 simple moving average support in the buying zone. Before this, AMP formed a Cypher (which I have already shared on 26th Mar 2021) and this previous pattern produced more than 380% rally.
Previous pattern:
Now this time when AMP token will complete this final leg of the bullish Cypher then it will also complete the move upto the support of the broadening formation.
Current pattern:
Conclusion:
Even though this time the AMP token is again forming a big bullish reversal pattern. However, for the completion of the final leg of this current move we need a little more drop and then the price action will enter the bullish reversal zone. Ideally, after entering the potential reversal zone we can buy this token.
