Key Insights
What drove the increase in AB price today?
The announcement by World Liberty Financial about USD1 going live on the AB Chain sparked a surge in buying activity.
Is the upward trend sustainable?
Unlikely, as the A/D indicator continued to decline while the price rose, indicating a bearish divergence.
Between October 7th and November 7th, AB [AB] witnessed a 36.7% decline in price over a month.
In just a week, AB rebounded by 46%, reaching a trading price of $0.0077. Much of this growth followed the announcement by World Liberty Financial [WLFI] confirming the launch of USD1 on the AB Chain.
The collaboration between WLFI and AB aims to provide users with a faster, more convenient stablecoin experience through USD1, a stablecoin created by WLFI.
The anticipation that this partnership would enhance the payment ecosystem and inject liquidity onchain explains the recent surge in AB’s value.
The rally actually began a few days prior to the official announcement, potentially influenced by informed traders.
While the exact catalyst remains uncertain, the current daily trading volume of close to $40 million marked a 200% increase from the previous day, indicating the potential for further growth if demand and volume are sustained.
Analyzing AB Price Trends – Keeping an Eye on Short-Term Volatility
Source: AB/USD on TradingView
The 1-day chart depicts AB’s retest of October levels before a sharp downtrend, with the price still below the 78.6% Fibonacci retracement level, indicating weakness among buyers, corroborated by the downward trend of the A/D indicator.
Short-Term Outlook Signals Significant Volatility
Source: AB/USD on TradingView
The 1-hour chart highlights recent high volatility as prices surged post-announcement, followed by a pullback due to profit-taking activities.
Currently, AB is approaching $0.008, with its moving averages indicating an upward trend.
Traders should brace for volatility if considering investments in this asset.
Disclaimer: The information provided is the author’s opinion and does not constitute financial, investment, or trading advice.