Amp Crypto’s 40% Crash? Here’s Why a Rebound Is Inevitable

Amp's brutal 40% plunge has traders panicking—but the smart money sees blood in the water. Three catalysts could trigger a violent reversal.

1. Collateral King Rises Again: Amp's unique position as the go-to collateral token for real-world crypto payments isn't going anywhere. When transaction volumes spike (and they will), demand follows.

2. Whale Accumulation Play: That 40% haircut? A gift for institutions building positions. Check the on-chain data—big wallets are scooping up discounted tokens like Black Friday shoppers.

3. The 'Too Cheap' Factor: At these levels, Amp's market cap looks like a rounding error compared to its potential addressable market. Even Wall Street's most cynical quant would raise an eyebrow.

Rebounds happen fast in crypto—usually right after the last paper hands capitulate. Pro tip: When your Uber driver starts crying about his Amp bags, buy the dip.

Amp crypto has formed a double-bottom pattern

The first reason AMP may bounce back is that it has formed a double-bottom pattern on the daily chart. This pattern consists of two distinct lows and a neckline. In this case, the bottom section is at $0.0029, while the neckline is at $0.00578.

The profit target in a double-bottom is established by subtracting the lower side from the neckline. In this case, the calculation gives the pattern’s height as $0.00288. Adding this figure to the neckline gives a target of $0.0086, up 155% from the current level.

Whales are buying Amp

Another reason the Amp token may rebound is that whales are actively accumulating AMP. These large holders are increasing their token holdings, signaling expectations of a price recovery.

One reason for this accumulation is the belief that Amp is highly undervalued, as the MVRV ratio has plunged to -1.78. An MVRV ratio below 1 typically indicates that a token is trading at a discount.

The chart below shows that wallets holding between 100,000 and 1 million AMP have increased their holdings to 1.1 billion from the year-to-date low of 1.05 billion. Similarly, whales holding between 1 million and 10 million tokens now hold over 1.97 billion coins, while those with 10 million to 100 million now hold 10.7 billion.

Supply on exchanges is falling

Meanwhile, there are signs that investors are not dumping AMP even as its price declines. Nansen data shows that exchange balances have dropped to 15.35 billion tokens, down 15% in the last 30 days and 20% in the last 90. There were nearly 20 billion AMP on exchanges in April.

Therefore, the strong technicals, combined with the falling supply on exchanges and increased whale accumulation, suggest that AMP may bounce back.