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Ampera’s AMP rose 62% in the last 24 hours and continued its rally as on-chain metrics indicated whales have begun accumulating the altcoin, driven by its increasing utility.
AMP (AMP) soared to a high of $0.0133 on Wednesday morning, marking a jump of over 330% from its lowest point this year. The surge in price pushed its market cap over $1 billion for the first time in 29 months before settling at $978 million when writing.
The altcoin’s rally coincided with a 750% surge in daily trading volume, which reached over $601 million, while AMP also trended on Google on the back of heightened retail interest.
Why is AMP price rising?
There are three potential catalysts driving AMP’s recent rally.
Firstly, AMP’s surge coincided with a broader rally in the altcoin market, as major cryptocurrencies like Binance Coin (BNB) and Tron (TRX) posted significantly higher daily gains of 17.6% and 68.8%, respectively, compared to Bitcoin’s modest 1.4% rise during the same period.
Second, Flexa, a digital payments platform that uses AMP as collateral, recently announced its integration with the Zcash wallet app ‘Zashi.’ The integration allows users to make purchases at Flexa-enabled U.S. stores without revealing their wallet or currency details.
As more transactions occur on the platform, the demand for AMP to serve as collateral naturally increases. This reduces the token’s available supply, creating upward pressure on its price, which is potentially fueling growth for the altcoin.
Third, AMP’s rally has been bolstered by a surge in whale activity over the past 24 hours. Data from IntoTheBlock shows that whale holder netflow jumped over 150%, shifting from a $186K outflow on Dec. 2 to $473K in inflows on Dec. 3, signaling renewed interest from large investors.
Meanwhile, on the daily chart, AMP has risen above both the 50-day and 200-day Simple Moving Averages, indicating bulls are still in control. Further, the 50-day SMA has crossed over the 200-day SMA, forming a golden cross, a major bullish sign in technical analysis.
Further, the MACD line (blue) and the signal line (orange) on the Moving Average Convergence Divergence indicator have been moving higher above the zero mark, which means the rally still holds significant momentum.
Considering these signals, AMP could potentially continue its rally, a sentiment also echoed by analyst Javon Marks, who projected that AMP could climb to $0.07048—a potential increase of over 470% from its current price.