AMP token primed for 40% selloff after SEC scrutiny and Binance delisting

AMP token primed for 40% selloff after SEC scrutiny and Binance delisting
image from amptoken.org

YEREVAN (CoinChapter.com) – Ameriprise Financial, Inc.’s collateral transfer token AMP traded at $0.008 in the New York session on Aug. 4, after a 14% decline month-to-date, after Binance announced it will delist the token until “further clarification” from the U.S. Securities and Exchange Commission (SEC). However, the digital asset is in for more pain, as it formed a bearish pattern, best visible on the daily chart.

AMP Token Price in a Consolidation Channel

The AMP price action formed a consolidation channel after a sharp drop in the week of June 6-13. The setup entails two parallel trendlines that enclose the token’s fluctuations until a break in either direction can occur.

Meanwhile, considering the bearish cues, the channel could forecast a bias continuation, in which case AMP bears would anticipate an over 40% decline to approximately $0.045.

AMP daily chart featuring a consolidation channel. Source: Tradingiew.com
AMP daily chart featuring a consolidation channel. Source: TradingView.com

Also read: Optimism has rallied 160% in a week — what’s ahead for OP price?

The declining trading volumes confirm the outlook and point to traders’ low expectations from AMP returns. Moreover, scrutiny from the SEC and the subsequent Binance delisting intensified the selloff fears.

SEC calls AMP ‘securities’

Binance, the largest crypto exchange globally, announced on Aug. 2 that it would no longer offer AMP pairs on the platform in the wake of the SEC’s cautionary assessment. In detail, the law enforcement agency called AMP securities, among eight others: RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM.

SEC noted the aforementioned digital assets in a lawsuit against a former product manager at Coinbase, another crypto exchange giant. However, Binance took drastic measures to ensure the exchange itself won’t fall under scrutiny from the watchdog.

Also read: BNB Price Gearing For Another Lift-Off to $360: Rally Isn’t Over Yet.

In its suit, the SEC named nine digital assets that it alleges are securities. Of those nine tokens, only amp (AMP) is listed on the Binance.US platform. Out of an abundance of caution, we have decided to delist the AMP token from Binance.US, effective August 15, 2022.

announced Binance.

Meanwhile, Coinbase took a combative approach. The exchange’s chief legal officer, Paul Grewal, did not hold back in his blog post on the matter.

Coinbase does not list securities on its platform. End of story. Instead of having a dialogue with us about the seven assets on our platform, the SEC jumped directly to litigation

said the executive.

Also read: 3 reasons why Bitcoin price has bottomed out — expert

Considering SEC’s description of AMP as ‘securities,’ the token could suffer further losses. Additionally, Binance delisting would mean a smaller exposure to potential new investors. As of Aug. 4, the digital asset’s $0.008 price eyed a 40% decline towards approximately $0.0045.

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AMP, AMP token primed for 40% selloff after SEC scrutiny and Binance delisting

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