Ampleforth (AMPL) chops after a 77% price jump

September 10, 2020
By Benson Toti

AMPL/USD price spiked a staggering 77% early Thursday, but heavy selling has pushed prices lower over the past hour.

After trading around $0.70 for much of the week, AMPL/USD price surged from around $0.767 this morning to exchange hands near highs of $1.28. The uptick saw the token’s price record an impressive 77% in gains before seller rejection forced a retreat.

As of writing, the cryptocurrency trades around $0.92, still 28% up on its opening price.

The price is facing a potential immediate reversal unless bulls hold support above $0.90.If seller congestion takes hold, a revisit of September 3-5 price levels is possible.

On the other hand, an uptick across the markets could likely catalyze further action on the bounce.

AMPL/USD technical perspective

The technical picture suggests that the upside is likely to hold and see bulls retest the area around previous highs on lower time frames. Replicating the move on higher time frames would enhance the bullish case.

Conversely, a dip from current levels would bring into play prices at or near $0.80 and beneath that, the SMA 50 and SMA 20.

The MACD on the 4-hour chart is indicating a bullish confirmation is underway, having reversed from the bearish outlook seen from highs of $2.49 on September 1 to lows of $0.58 on September 5.

The RSI is also pointing north into bullish territory, while the SMA 20 is forming a bullish divergence beneath the SMA 50. If the shorter-term moving average crosses above the medium-term metric, the bullish bias will strengthen. In this case, the AMPL/USD pair could rally to prices near the next hurdle around $1.45.

If bulls breach the expected resistance, the next target is $1.67 on the lower time frames. Prices at $2.24 and a retest of 7-day highs around $250 will be critical if bulls were to establish control.

Other crypto movers and shakers in the past 24 hours are Aave (LEND) with a 24-hour change of 27.72%, Loopring (LRC) that has changed 27.41% as of writing and Ren Protocol (REN) that is 24.26% up over the past 24 hours.

BTC/USD continues to hold above $10k with the price up 1.07% to currently trade around $10,285. ETH/USD is 9% up on the day and could aim for $390-$400 if bulls break above resistance at $375.