AMP Price Struggles to Recover After Reaching Oversold Levels

Key Takeaways

• Falling wedge nearing a potential breakout
• Key support at 0.786 Fibonacci retracement level
• Bullish RSI divergence signals a possible reversal

Amp (AMP) has been in a prolonged downtrend, forming a falling wedge structure on the daily chart. This classic reversal pattern suggests the potential for a bullish breakout.

Additionally, AMP has reached a key support zone at the 0.786 Fibonacci retracement level, where historical price reactions indicate strong demand.

The lower time frame chart reinforces this perspective, with a potential local bottom forming and an Elliott Wave count suggesting an impending reversal.

AMP Price Analysis

AMP’s daily chart displays a well-defined falling wedge pattern, a bullish structure that typically precedes a breakout.

The price has been declining since hitting its peak of $0.014 in December and has now reached the crucial 0.786 Fibonacci retracement at $0.00447, a historically significant support zone.

This green demand zone has been tested multiple times, making it a potential bottoming area.

The Relative Strength Index (RSI) on the daily time frame is deeply oversold, indicating exhaustion of selling pressure. This suggests that a price reversal could be imminent, aligning with the end of the wedge structure.

Additionally, the price action shows a five-wave corrective sequence, with the current level potentially marking the final wave (e) of an ABCDE correction.

A breakout above the upper wedge resistance could trigger a significant rally, with the next targets at $0.00731 (0.618 Fibonacci retracement) and $0.00912 (0.5 Fibonacci retracement).

If AMP fails to hold above this support, further downside towards $0.00148 (1.0 Fibonacci retracement) could be in play. However, this scenario remains less likely given the current oversold conditions and bullish divergence in RSI.

AMP Price Prediction

The 1-hour chart offers a closer look at the potential reversal setup. AMP has recently made a low of nearly $0.00447, slightly below the 0.786 Fibonacci retracement, and is still trending downward.

The Elliott Wave structure suggests that the price is at the tail end of a five-wave corrective phase labeled ABCDE, priming it for an impulsive recovery.

If AMP successfully breaks out of the falling wedge, the first major resistance to test is $0.00550, aligning with local price action resistance.

Beyond this, a measured move based on Fibonacci extensions places wave (iii) targets at $0.00731 (0.618 Fibonacci retracement) and $0.00912 (0.5 Fibonacci retracement).

These levels represent strong confluence zones where the price may face temporary rejections before continuation.

Failure to hold above the $0.00447 support could invalidate the bullish outlook, leading to further downside.

However, given the strong RSI divergence and falling wedge structure, a short-term rebound remains the more probable scenario.

A successful confirmation of a higher low would further support the case for an upward move in the coming sessions.

Key Levels to Watch

• Immediate Resistance: $0.00550 (local price action resistance).
• Key Resistance: $0.00731 (0.618 Fibonacci retracement).
• Major Resistance: $0.00912 (0.5 Fibonacci retracement).
• Immediate Support: $0.00447 (0.786 Fibonacci retracement).
• Critical Support: $0.00350 (potential final demand zone).

A breakout above the wedge structure could confirm a reversal, targeting higher Fibonacci levels, while a failure to hold key support could signal extended downside risk.