Key Takeways:
- Crypto payments network Flexa (AMP) rebounded strongly after Friday’s global crypto market liquidation.
- Partnerships and recent listings are helping drive the prices up.
NEW DELHI (CoinChapter.com) — AMP, the native collateral token of the Flexa payment network, rebounded strongly from broad crypto market sell-off caused by FUD from reports of new Coronavirus strain rocked the global financial markets.
AMP registered its first weekly gains after losing 9.70% and 13.45% in the weeks before. The Flexa token also registered its highest single-day gain in the last six months on Nov 23. The uptrend is likely fueled by bullish fundamentals coming from Flexa’s recent partnerships along with listings.
What Is Flexa?
Flexa is a cryptocurrency payment platform that helps merchants accept crypto payments. Users can hold their crypto on an app called SPEDN that can automatically convert their crypto holdings into fiat currency by scanning a QR code. Moreover, the transactions are instant, and the transaction fees in very low.
Instantaneous transactions help establish cryptocurrency’s value as a viable payment method. For example, a single BTC transaction can often take around 30 mins. Additionally, firms have to pay their taxes in fiat currency, and while they can convert the crypto they have into fiat, its value might change over time.
Flexa’s SPEDN app converts crypto to fiat at the time of payment itself within a few seconds. Flexa supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), among others. More than 41,000 stores in the US and Canada use Flexa to accept crypto payments.
AMP is the native token of Flexa. The network uses it as temporary collateral during crypto to fiat transactions. In detail, selling crypto for fiat currency can sometimes take a few mins due to the blockchain confirmations involved. Furthermore, due to their inherent volatility, crypto prices can change drastically before transaction confirmation.
If the crypto-fiat conversion fails, the network sells the collateral (AMP) instead. The collateral is provided by AMP holders who earn rewards for pooling their tokens. AMP has an active supply of 42.23 billion tokens and a maximum supply of 92.54 billion.
What’s Driving Investor Interest?
AMP helps Flexa achieve its goal of near-instantaneous transactions by acting as collateral for failed transactions. Furthermore, AMP is an open-source and extensible network. As such, future developers can find more use cases for the protocol.
AMP is also secure, with its security protocols verified by leading research firms such as ConsenSys and Diligence.
Moreover, AMP has a fixed, non-inflationary supply, similar to Bitcoin. The limited supply would help direct demand and supply laws in favor of AMP.
In addition, Flexa has been actively making major moves in the market, including partnerships and listings. For example, on Nov 23, the world’s largest crypto exchange by market volume, Binance, announced listing the token on its trading platform.
As per the announcement, AMP/BTC, AMP/BNB, AMP/BUSD, and AMP/USDT pairs are available on Binance for trading. In addition, cryptocurrency broker Voyager also announced that AMP is now available for trading on its app.
Also Read: Dogecoin next, says CEO as AMC introduces support for crypto payments.
The world’s second-largest cinema exhibitor, Regal Cinemas, recently announced it would now accept cryptocurrency as payment through a partnership with Flexa. Regal follows in the footsteps of AMC, which announced in early Nov that it would accept Bitcoin, Ether, and other cryptocurrencies as payment.
Regal stated that it would accept Bitcoin, Ether, Dogecoin, Litecoin, and stablecoins such as USDC, Gemini dollar, etc.
AMP Price Charts
The Flexa token recovered from Nov 26’s Black Friday sell-off to gain 8.56% intraday on Saturday. AMP broke above descending trendline resistance on Nov 23, gaining 38.32% in one day. However, the uptrend seems to be losing steam as the daily gains decline.
At present, AMP has immediate resistance at $0.0683. However, a strong uptrend could see the price move further up, challenging resistance at $0.0730. The $0.0730 resistance has rejected any upside movement after prices moved below it in late July this year.
Also Read: Crypto.com Chain wipes out weekly gains as CRO price drops over 30% in two days.
A sustained uptrend could bring prices to $0.0812 before any pullbacks occur. The $0.0812 price target is a key resistance level, as any price movement above the level has invited profit-taking sentiments, resulting in pullbacks. Bulls would need to consolidate after breaching above it if they want AMP prices to move higher.
On the other hand, AMP has immediate support near its 26-day EMA line at $0.0527. If prices fail to continue their uptrend, a downside move could result in prices falling to $0.05258, where the 50-day MA line and the 100-day MA line have formed a support confluence.
A marketwide sell-off could see prices fall below to support at $0.0479, near the descending trendline. Meanwhile, trend-based momentum oscillator MACD is bullish for AMP. Bars on the MACD histogram indicate the MACD line (difference of 12-day and 26-day EMA) moved above the MACD signal line (9-day EMA of MACD) on Nov 23.
Expanding bars on the MACD histogram indicate the Flexa token’s bullish momentum is increasing. Moreover, the relative strength index for AMP is currently neutral, clocking 56.18 on the daily charts. In addition, the RSI trendline is moving horizontally on the daily charts.
As such, AMP prices can continue their bull for some time before RSI reaches overbought levels and forecasts a trend reversal.
AMP was trading at $0.0624, up 0.83% at press time.
