Amp (AMP) token price has made a strong rebound in the past few days as the altcoin season continues. The coin surged to a high of $0.0043, the highest point since March 13th. It has jumped by more than 208% from its lowest point this year, giving it a market cap of more than $223 million.
Why is Ampere token rising?
Ampere is a blockchain network in the decentralised finance (DeFi) industry. The network’s goal is to provide decentralized permissionless collateral protocol on Ethereum, the biggest chain in the industry.
It is not clear why the AMP token price has jumped in the past few days. There are three likely reasons for this. First, the rally is likely because of the ongoing altcoin season, which has pushed most cryptocurrencies upwards.
A look at key websites like CoinGecko and CoinMarketCap shows that most altcoins have jumped by double digits in the past few months. Bitcoin, the biggest cryptocurrency in the world, has jumped by more than 150% from its lowest point in December.
Second, Amp token has risen as investors bet on a Decentralised Finance comeback. The latest data by DeFi Llama shows that the total value locked (TVL) in DeFi has jumped to over $50 billion. Networks like JustLend, Aave, and Compound are seeing more activity, which could benefit Amp.
Third, Amp is getting more traction among day traders in social media, where it is one of the most mentioned. It was trending on StockTwits, Reddit, and Twitter, which have become popular among traders.
Looking ahead, the next potential catalyst for the AMP price will be the upcoming Fed decision and US inflation data. These are important macro events that have an impact across all assets.
Amp price forecast
The daily chart shows that the AMP price has been in a strong uptrend in the past few days. This rally has been accompanied by higher volumes among traders. Most recently, AMP price is about to form a golden cross, which happens when the 50-day and 200-day moving averages make a crossover.
The Relative Strength Index (RSI) and the Stochastic Oscillator have pointed upwards. Therefore, the outlook for the token is bullish if the golden cross forms. If this happens, the next point to watch will be at $0.0058, the highest swing on January 17th. This view will be confirmed if other cryptocurrencies maintain their bullish trend.