AMP Drops 10% After Parabolic Surge as Warning Signs Begin to Emerge

Key Takeaways

• AMP completed a clean five-wave impulsive rally.
• Price shows divergence, favoring short-term correction.
• $0.00462 is key support for trend continuation.

AMP has broken out from a long-term downtrend and completed a five-wave impulsive structure, signaling a potential short-term top.

While the outlook remains bullish on the macro level, the lower time frame suggests a corrective phase may unfold before further upside.

This analysis explores the current structure and expected near-term movement, as the price recovered by 90% since the April low and could now be entering a corrective stage.

AMP Price Analysis

After finalizing a W-X-Y-Z corrective pattern in early April, AMP’s price action broke out of a multi-month falling wedge.

The bottom was established in the $0.0030–$0.0040 accumulation zone, which has been a significant structural support since March.

From there, the price rallied in a five-wave impulse, reaching $0.0058 and tagging the 0.236 Fib retracement of the December to April downtrend.

This impulsive 90% rally marks a potential shift in trend, as we saw a breakout above both the descending structure and the horizontal accumulation zone.

However, price was swiftly rejected at the Fib level, and the Relative Strength Index (RSI) printed overbought readings, hinting at cooling momentum.

While the breakout above $0.00462 was significant, AMP now trades at $0.0051 below its local high and shows short-term weakness, losing 10% since its recent high.

If the price is above $0.0046, it will maintain a bullish structure, which means the price retested the upper boundary of the accumulation zone and found support.

Reclaiming $0.00554 and continuing toward the 0.382 Fib ($0.0071) would confirm the start of a new bull phase and a sustained upward trajectory.

AMP Price Prediction

AMP completed five clean subwaves into a $0.0058 high on the lower time frame, followed by a consolidation inside a symmetrical triangle.

This is a classic post-impulse structure that often resolves into an ABC correction.

The first support is at $0.0050, the ascending triangle support, while the next is at $0.00462, the previous breakout level and wave (4) high.

If wave A of the correction breaks this level, it could target $0.00450.

A minor bounce in wave B toward $0.0050 may follow, before a deeper wave C drop toward $0.00380 – $0.00400, the key support zone highlighted in green.

This zone also aligns with the previous wave (ii) area and the top of the long-term accumulation base.

The RSI shows bearish divergence relative to the recent high, confirming momentum weakening.

If bulls defend $0.0046 and break above $0.0058, the correction would be invalidated, and a move toward $0.0060 – $0.0070 could develop instead.

The correction is favored unless invalidated by a strong volume that reclaims the local high.

Alternatively, the current price action could be interpreted as a bull flag, leading to more upside movement should we see an upward breakout.

However, that isn’t likely considering we can spot a lower-degree five-wave impulse in its ending wave, followed by signs of rejection at the first Fibonacci level of 0.236.

Key Levels to Watch

• Immediate Resistance: $0.0058.
• Structural Support: $0.00462.
• Wave A Target: $0.00450.
• Final Support (Wave C): $0.00380 – $0.00400.
• Macro Resistance: $0.00709 (Fib 0.382).