When it comes to crypto trading, it is traded the same way financial markets are traded and the concepts like supply and demand are all the same. I just want to do a quick analysis on Ampleforth and its future projections. First i want to talk a little on supply and demand so that you get the concept.
How does Supply & Demand work in these markets?
Supply and Demand is a concept used in economics and it shows the rate and which a product is moving in relation to price as a result of the demand we have and the supply aswel.
If there is scarcity in the market for a certain product demand will be high, as a result of that the product has to be supplied and it has to meet the demand of that product.
If the supply is low then it will be more scarce and this will drive the price up and if it is over supplied the price will fall because the market will be flooded.
Technical Analysis
From the image above we can see that in June 2020 around mid-month there where high levels of demand on AMPL and the price went as high as $3 per coin. As a result of this the AMPL was supplied and we saw the price falling down and the demand level was met.
Currently the price is trading at an area where demand started or we would say the market has come to collect orders and preparing to shoot again since we are on a bullish order block.
Conclusion
I am expecting the price to break above the trend-line and retest that level then continue with its bullish run and it should find support on $2 then continue til it reaches $3 again. It will be wise to hold your AMPL until we reach that price level then from there we decide if we want to sell or not.
With the advantage of rebasing we wil have more tokens than we have currently since the price will be trading above expected price.