AirDAO’s AMB Token Ascends 40% in Two Days — Major Correction Ahead?
Key Takeaways:
AirDAO token AMB jumped 40% in two days.
The reversal has begun, and bears expect more pain ahead.
Binance adjusted its margin tier and leverage for AMB, possibly triggering a dump.
YEREVAN (CoinChapter.com) — AirDAO, a “community-governed” layer one blockchain and ecosystem of web3 dApps, saw it’s token AMB jump 40% in the previous 48 hours. The AMB/USD exchange rate peaked at $0.011 on Aug 27 and receded to $0.0088 on Aug 28.
The token’s trading volumes took off over 2,800% in the previous 24 hours, pumping the price.
Meanwhile, AMB could bleed more in the coming sessions. The token retested the support-turned-resistance at $0.012 and fell below its 200-day exponential moving average (EMA-200; blue wave).
Moreover, the AirDAO token’s relative strength index (RSI) crossed into an “overbought” territory. In detail, the RSI is a gauge for profitable market entry and exit points. Thus, an RSI reading above 70 signifies that the asset price is much higher than the “normal” range, which could result in a stall or a reversal.
Thus, the target price for AMB would stand at the next available support at approximately $0.0061, or nearly 30% below the current value, effectively erasing the latest price increase.
Technical issues aside, Binance provided more soil for a potential selloff among AMB traders.
AirDao could expect a Binance-driven slump ahead.
Additionally, according to the latest announcement, Binance Futures will update the leverage, margin tiers, and capped funding rate multiplier of the AMBUSDT Perpetual Contract. The changes will take effect at 2023-08-28 05:05 (UTC).
Existing positions opened before the update will be affected. It is strongly advised to adjust the position and leverage prior to the adjustment in order to avoid any potential liquidation.
warned the platform.
In short, the capped funding rate multiplier for the AMBUSDT Perpetual Contract was raised from 0.75 to 1. Binance explained the move by citing “potential risks in extremely volatile market conditions.” Moreover, the platform reserves the right to further alter the margin tier and funding rates in the future.
Meanwhile, the AMB/USDT pair on Binance holds over 84% of the AMB liquidity, proving the most influential pool for the token.
The post AirDAO’s AMB Token Ascends 40% in Two Days — Major Correction Ahead? appeared first on CoinChapter.
Filed under: Bitcoin - @ August 28, 2023 7:00 pm