Flexa Network’s AMP token added to DeFi Fund basket by Grayscale Investments

Key Takeaways:

• Grayscale Investments rebalanced its DeFi fund to include Flexa Network’s AMP token.
• Meanwhile, AMP is moving in a descending triangle pattern.

NEW DELHI (CoinChapter.com) — Grayscale Investments, the world’s largest crypto asset manager, announced the rebalancing of Grayscale DeFi Fund.

The investment firm announced it adjusted the DeFi fund’s portfolio by adding AMP, the native token of Flexa Network. In line with the CoinDesk DeFi Index methodology, Grayscale removed Bancor(BNT) and Universal Market Access(UMA) and rebalanced the fund with AMP.

Flexa Network is a merchant-focused app that allows users to receive payments in cryptocurrencies. The platform uses AMP tokens to collateralize the transactions.

Grayscale’s DeFi Fund is a basket of assets that make up the CoinDesk DeFi Index.

Grayscale’s rebalanced DeFi Fund basket consists of nine assets, with Uniswap(UNI) having the highest weighting of 42.33%, followed by Aave (13.06%), and Curve (10.63%). In addition, Flexa Network’s AMP contributes 7.39% to the fund. Since its inception, the fund has grown by 11.2%, with a current AUM of $11.6 million.

Also Read: Grayscale’s latest launch- a trust with exposure to Ethereum competitor Solana.

The crypto asset manager also reshuffled the weightings of the Grayscale Digital Large Cap (GDLC) Fund. However, Grayscale did not add or remove any tokens from the GDLC fund. As a result, Bitcoin and Ethereum continue to dominate the GDLC fund, accounting for a combined 90.63% of the total fund.

Meanwhile, Flexa Network’s AMP token moves in a bearish technical pattern called a descending triangle. The current downside target for AMP, if the pattern holds, might see prices nosedive over 86%.

AMP Token Price Charts

In detail, a descending trendline connecting lower highs and a horizontal trendline connecting a series of lows forms the descending triangle pattern. The chart pattern forecasts a weakening in demand for an asset. After breaking below the descending triangle pattern, the price target is equal to the height of the thickest part of the triangle.

As such, AMP prices may suffer a drop of 86% from current prices, pushing the Flexa Network token to $0.007, a price level last seen in Jan 2021.

AMP prices previously broke above a descending triangle pattern, only to paint the same pattern again on its daily charts. As a result, Flexa Network has jumped over 21% since Jan 1. However, the triangle’s descending trendline resistance rebuffed the rally on Tuesday.

AMP faces immediate resistance from its 200-day MA line near $0.056. However, if bulls use the Grayscale news to push prices upwards, Flexa could rise to $0.061 before corrections pullback prices. Moreover, Flexa Network is currently bearish across the medium and long-term timeframes.

Meanwhile, Flexa supports its 26-day EMA line near the $0.508 (~0.51) price level. If the price falls further, the support near $0.049 would play. AMP also has support at $0.047, near the triangle pattern’s horizontal trendline.

Also Read: Crypto payment network Flexa’s AMP jumps 66.7% in a week.

Meanwhile, momentum oscillator MACD is bullish for Flexa Network. However, the MACD histogram, which plots the difference between the MACD line (difference between 12-day and 26-day EMA) and its signal line (9-day EMA of MACD), shows AMP’s price momentum weakened 2021 ended.

However, the histogram bars are now expanding bars, signaling the strengthening of bullish momentum.

Flexa Network’s relative strength index is comfortably neutral at present, clocking 54.22 on the daily charts.

At the time of writing, AMP was changing hands $0.0522, up 0.53% on the day.