Assets covered: AMP

Metrics used: Active Addresses, Active Deposits, Whale Transactions Count, Network Growth and Trading Volume

AMP is a collateral token that provides instant, verifiable assurance for any real-world application. It basically can collateralize any type of asset transfer, whether digital or physical.

AMP is more than double the best performer of Tuesday according to Coingecko, showing impressive +27% in a day:

↘️ Bearish cases

1. Active Addresses

We are seeing a pump on a slightly lower address activity:

Although it's picking up very quickly.

Higher price on lower activity is forming a bearish divergence.

2. Daily Active Deposits

We can see that AMP's deposits to exchanges tend to spike around local tops, like on April 18th, shortly before a correction. Not exactly at the top, but before, being like a warning sign. Happened on 6th of May as well. It sometimes takes a little bit of time for this sell pressure to be absorbed. We would definitely be concerned when we see this:

We've seen a spike before previous tops earlier and we are seeing it again.

As active addresses are growing along with price, so deposits are growing as well. So we might suggest that we might see some correction at least short term.

3. Whale Transactions Count

This is also a possible bearish signal. Some of the backtests that we've done on whale transactions suggest that when they spike, it happens quite often around local tops. So to say spikes in whale transactions is usually not a great sign.

4. Network Growth

The number of new addresses being created on the network each day is declining after Coinbase listing. Means AMP is probably losing traction at the moment:

↗️ Bullish cases

1. Trading volume

A classic trading volume is surging along with price, which is a good sign:

2. Pure basic TA

Technically speaking, price has broken the resistance and tested support. Looking some bullish on TA side:

Summing up

There are some interesting signals. Bearish divergence in active addresses, spikes in deposits. We are also seeing spikes in whale transactions suggesting perhaps some people caching out. On the other side, a trading volume chart looks quite healthy along with price action itself.

We'll see how this plays out soon.

Take care.

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.