Why is AB’s price up today? Whales, USD1 rollout & more…
AB’s sharp rebound now hangs on whether fresh demand can sustain the surge beyond its key resistance levels.
Key Takeaways
Why was the price of AB up today?
The World Liberty Financial announcement that USD1 was going live on the AB Chain was met with enthusiastic buying pressure.
Can the uptrend be sustained?
Likely not, as the A/D indicator continued to trend downward while the price moved higher- a bearish divergence.
From the 7th of October to the 7th of November, AB [AB] prices trended downward, losing 36.7% in a month.
Within a week, AB has rallied 46% and was trading at $0.0077. A good chunk of these gains came after World Liberty Financial [WLFI] announced that USD1 was going live on the AB Chain.
The WLFI and AB partnership is aimed at bringing users a faster, more convenient, stablecoin experience onchain through USD1, the WLFI-created stablecoin.
Expectations that this partnership would enrich the payment ecosystem and inject liquidity onchain helped explain AB’s recent gains.
The rally started a few days before the official announcement, which could have been driven by knowledgeable whales.
While the exact cause is unclear, the current daily trading volume of nearly $40 million was a 200% increase from the previous day, according to CoinMarketCap data. This meant that the $668 million market cap asset could rally higher if the volume and demand are sustained.
Charting AB price trends – watch out for short-term volatility
The 1-day timeframe captured the retest AB made of the October levels, before the downtrend accelerated. Note that the price was still not back above the 78.6% Fibonacci retracement level.
This was a sign of weakness from the bulls, and the A/D’s downtrend agreed with this finding as well.
Short-term setup shows heavy volatility
The 1-hour chart revealed the high volatility in recent hours as the prices surged following the announcement, then receded when faced with a wave of profit-taking.
At the time of writing, AB was moving toward $0.008, and its moving averages showed an uptrend.
Traders should watch out for volatility if they’re interested in this asset.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
