Despite the gloomy picture enveloping the entire market, some altcoins still recorded impressive recoveries, with AB emerging as one of the strongest growth names.
The original token of AB Chain has surged about 12% in just 24 hours, accompanied by a spike in liquidity as trading volume soared over 53%, according to data from CoinMarketCap.
AB returns to the bridge of May
After officially launching in March, the price of AB quickly entered a prolonged adjustment phase, closing around the end of May. The subsequent recovery brought AB to set a new high in mid-June, but this trend did not last long as the market soon shifted to a bearish price structure.
At the time of writing, AB is fluctuating close to the bottom range formed in May — an area that previously triggered a short-term technical rebound thanks to bottom-buying pressure. However, on the medium-term timeframe, market momentum is still leaning towards the bears.
Since the peak in June, AB has continuously weakened under a clear downtrend. Profit-taking pressure emerges right after rebounds, while the Cumulative Volume Delta indicator shows that selling pressure still dominates the market.
Notably, the total value of short positions currently exceeds long positions by about 565,000 USD, reflecting a cautious — even pessimistic — sentiment that still prevails among investors.
Source: TradingView
Nevertheless, the momentum picture is showing signs of change. The MACD indicator shows that the bears still hold control, but their strength is gradually weakening. This is often an early signal indicating a return of buying pressure, especially as prices approach important reversal areas.
Although AB recorded an increase in the past 24 hours, the sustainability of this recovery does not only depend on internal technical signals. The overall trend of the cryptocurrency market, especially the sector-wide risk sentiment, will play a key role in determining AB's next direction.
Why did AB increase today?
The expansion of the ecosystem alongside increased on-chain activity is becoming the main driving force behind AB's rise.
Specifically, AB Chain has integrated the stablecoin USD1 following a partnership agreement with World Liberty Finance (WLFI), significantly enhancing DeFi utility for the network. Concurrently, liquidity flows from USD1 are also entering the ecosystem, contributing to improved market depth and trading activity.
In another development, the sentiment of holders has begun to brighten after several weeks of nearly flat movement. At the time of writing, the total number of addresses holding AB has increased to 30,570, reflecting a resurgence of interest among investors.
Source: CoinMarketCap
Notably, this increase occurs in the context of prices still fluctuating around the bottom of the cycle, indicating that demand is forming in a more sustainable direction. At the same time, the supply structure of the token also reports a change as the locked supply ratio drops below 8%, equivalent to about 7.46 billion AB.
Source: CoinMarketCap
This decline helps lower the short-term unlocking risk, thereby alleviating concerns about sudden selling pressure. However, AB's recovery outlook still heavily depends on the ability to maintain buying strength in the near future. Previously, this token recorded an increase of over 295% from the current price range, but so far, the confirmation signals for a similar growth scenario have not yet been clearly defined.
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