Amp crypto has fallen almost 30 percent in the past 24 hours, trading at $0.057. The altcoin has pulled back 50 percent from its $0.12 all-time high attained on Jun. 16. Why is Amp crypto falling, and will it go back up?
Amp is the official cryptocurrency of a DeFi project by the same name. The project offers a blockchain collateral service that guarantees merchants their payment even if a network experiences problems and customers aren’t able to complete a transaction immediately.
Why is Amp crypto falling?
Amp has been one of the best-performing cryptocurrencies in 2021, gaining 2,000 percent. These blockbuster returns tempted some investors to book profits, pulling down Amp’s price.
Will Amp go back up?
Even after its recent selling, Amp crypto is still up more than 800 percent this year, which means that there's an incentive for some investors to take profits and drag down the crypto further. However, after those short-term profits are taken, Amp could rise again thanks to the project's bright commercial prospects.
As shopping shifts to e-commerce and businesses protect themselves against transaction fraud, demand for collateralized payments looks set to rise. This could draw more users to the Amp platform, boosting the use and value of its token. It could very well be the next cryptocurrency to explode.
Amp's addition to Coinbase also bodes well for the coin. The largest crypto trading platform in the U.S., Coinbase promises to expose Amp to more institutional investors.
Amp crypto's forecast for 2022
According to Digital Coin Price, Amp will rise 30 percent from its current price to close 2021 at $0.082. The crypto will continue gaining ground, returning to its all-time high of $0.12 as early as Mar. 2022.
In the next five years, Amp is expected to hit multiple all-time highs: $0.18 in 2024, $0.20 in 2025, and $0.24 in 2026 (which implies a 300 percent upside).
Should you buy Amp crypto during the crash?
In Nov. 2020, Amp fell to its all-time low of $0.00079. Many investors took off but others took faith and scooped up the cheap token. Those investors are now sitting on 8,000 percent returns, even with Amp’s recent pullback. To put that into perspective, if you sank $1,000 into Amp then, you’d be celebrating an $80,000 profit now.