Amp Price Drops 65% Year-to-Date as Flexa TVL Falls 93%

Amp, a prominent altcoin, has experienced a significant decline this year, mirroring the broader market trend. The price of Amp dropped to $0.0033 on Tuesday, reflecting the bearish sentiment that has gripped the cryptocurrency market. Its market cap has slipped from over $965 million to $283 million today. A potential reason for this decline is the free fall in the total value locked on Flexa, a payments network that integrates with point-of-sale systems to allow merchants to accept crypto. The total value locked on Flexa has dropped to $20.8 million, down from the year-to-date high of $295 million. Activity on the Flexa Network is critical for Amp, as the token provides the collateralization mechanism that underpins the platform. Companies such as Chipotle, GameStop, and Ulta Beauty are among those using it. Amp serves as collateral to guarantee payments. If a transaction fails or takes too long to settle, staked AMP tokens can be liquidated to ensure merchants receive funds promptly.

Despite this downturn, recent on-chain data indicates that whale investors are actively accumulating Amp, suggesting a potential reversal in its price trajectory. Whale wallets, which control substantial amounts of Amp, have been adding to their holdings, a move that often precedes a price rally. Addresses holding between 10 million and 100 million AMP now control 10.97 billion tokens, up from 9.95 billion in February. This accumulation trend is not unique to Amp; similar patterns have been observed in other cryptocurrencies. Additional data shows that the supply of AMP tokens on exchanges has dropped by over 43% in the past 90 days. This is typically seen as a bullish sign, indicating that investors are transferring tokens to private wallets rather than preparing to sell.

The daily chart shows that Amp has formed a double-bottom pattern at $0.00306, a bullish setup in technical analysis. Meanwhile, the Relative Strength Index has rebounded from an oversold reading of 28 in June to the current 44. The Moving Average Convergence Divergence indicator has also flashed a bullish crossover. These indicators suggest a potential bullish reversal. If momentum continues, the next target could be $0.00573, the swing high from May 14, which would represent a gain of about 70% from current levels. However, a drop below the support at $0.0030 would invalidate the bullish thesis.

According to analysts' forecasts, the Amp price is expected to reach $0.003634 in 2026, $0.004417 in 2030, $0.007195 in 2040, and $0.01172 in 2050, based on an annual growth rate of 5%. These projections, while speculative, highlight the potential for long-term growth in the Amp ecosystem. The continued buying by whales supports the notion that Amp could see a price recovery in the near future, driven by increased demand and investor confidence. The accumulation of Amp by whales is a positive sign for the cryptocurrency's future prospects. Historically, such buying patterns have preceded price rallies, as large investors often have access to information and insights that smaller investors may not. The current market conditions, characterized by volatility and uncertainty, make it crucial for investors to stay informed and adapt their strategies accordingly. The ongoing accumulation by whales suggests that Amp could be poised for a rebound, making it an attractive option for those looking to capitalize on potential price movements.