Ampleforth Governance Token (FORTH) has experienced a significant surge today, with its price rising by more than 19%. This sudden increase in price has caught the attention of traders and cryptocurrency enthusiasts, prompting discussions about the potential reasons behind this upward movement. However, there are factors that suggest the surge may not be sustainable in the long term.
According to a tweet by Coin Sonar V2, there has been a notable volume spike in FORTH’s trading. The trading volume for the USDT pair of FORTH reached approximately 1.57 million USDT within a 15-minute period, which is nine times higher than the average volume. The buying volume accounted for 975.93K USDT, indicating increased interest in acquiring FORTH.
Coin Sonar V2 also provided a boost score of 3/10, suggesting a moderate level of market enthusiasm for the token. The 24-hour trading volume for FORTH on Binance stood at 15.41 million USDT, further highlighting the heightened activity surrounding the token. As a result of this increased trading activity, the price of FORTH has risen by 26.4% within the past 24 hours.
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Show more +Another tweet by Futures Trading, posted by Mike Goreham, revealed that traders who engaged in futures trading with FORTH have achieved a 120% profit target. This success in trading FORTH may have contributed to the overall positive sentiment surrounding the token.
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The Reason the Ongoing Move May Not Last
However, it is worth considering that when traders begin to take profits, it often leads to a decline in price in the short term. Therefore, the current surge in FORTH’s price may not be sustainable if traders decide to sell their holdings and secure their profits.
Furthermore, FORTH’s price has encountered a key resistance level at approximately $8.2. After reaching this resistance point, the price has started to decline and is currently hovering around $7.0. In order for the bullish momentum to continue, buyers will need to successfully break through the $8.2 resistance level, allowing for further upside potential.
FORTH’s Strong Utility
One of the factors potentially influencing the surge in FORTH’s price is its utility as the governance token of Ampleforth (AMPL). FORTH holders have the ability to vote on proposed changes to the Ampleforth protocol or delegate their votes to representatives who vote on their behalf. AMPL, the underlying cryptocurrency, is unique as it is the world’s first rebasing cryptocurrency. Similar to Bitcoin, AMPL is non-dilutive, but it can also be used to denominate contracts of predictable value. This utility and the governance aspect of FORTH may be attracting investors and driving up its price.
While the surge in FORTH’s price has garnered attention and generated excitement, it is essential to remain cautious about its sustainability. The possibility of profit-taking by traders, coupled with the resistance at $8.2 and the need for further upside momentum, suggests that the ongoing move may not last in the long term. Traders and investors should closely monitor these developments to make informed decisions regarding FORTH.
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