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AlchemyPay Price Forecast: Mix of Fundamentals and Low Market Cap Could Send ACH to $0.10 Soon

Highlights:

  • Alchemy has been in a correction after the Friday, August 22 rally
  • Price correction driven by weakness across the market
  • Marketwide rebound due to the upcoming rate cut could send ACH to $0.10

AlchemyPay (ACH) is slightly in the red today, a reflection of the minor correction across the market today. At the time of going to press, AlchemyPay was trading at $0.0205, down by 2.02% on the day. However, trading volumes have gone up parabolically during the day. At the time of going to press, AlchemyPay trading volumes were up by 104% to stand at $31.12 million today. 

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AlchemyPay’s rising volumes when the price is in the red could be an indicator that short-term holders are exiting their positions, or that short sellers are taking control intraday. Such price action is quite expected after the Friday, August 22, parabolic price rally. Despite the intraday price correction, the momentum overall favors AlchemyPay bulls. 

AlchemyPay’s Strong Use Case: A Foundation for Value Growth

One of the reasons why bulls favor AlchemyPay is its use case. Despite its lower ranking in cryptocurrency market rankings, AlchemyPay has a stronger use case than most cryptocurrencies in the top 100 market cap rankings. AlchemyPay is focused on connecting the existing fiat economy with the emerging cryptocurrency payments economy. Since it launched in 2018, AlchemyPay has made impressive progress in connecting institutions, businesspeople, and consumers through seamless crypto and fiat payments.

AlchemyPay’s use case is so strong that it has, in recent months, inked deals with big players in the finance industry. For instance, AlchemyPay entered a partnership with Backed, the world’s first fiat payment gateway for investors looking to get into the world of tokenized stocks and ETFs. This is a big deal given that tokenized assets are one of the fastest-growing aspects of the cryptocurrency market at the moment.

AlchemyPay has also inked deals with Ripple for the expansion of Ripple’s RLUSD into Europe. Such a use case for a cryptocurrency that ranks #232 in market capitalization rankings gives it a lot of potential for growth going into the future.

AlchemyPay’s Marketcap Too Low Relative to Fundamentals

The market capitalization is a significant factor when it comes to attracting investors seeking parabolic price gains. For all its strengths, AlchemyPay has a market capitalization of $194.84 million. This is tiny in a market where some meme coins have market capitalizations that are upwards of $10 billion.

If Alchemy were only to achieve half of such a market capitalization, then it could give a significant return on investment, more than most large-cap cryptocurrencies can offer at this point in time. This makes AlchemyPay one of the cryptocurrencies likely to experience FOMO buying once the bull run starts to gain traction. 

Upcoming US Interest Rate Cuts Could Send AlchemyPay Price to New Highs

The potential for FOMO buildup became quite evident on Friday, August 22, when most cryptocurrencies recorded vertical price gains. Such gains point to a growing investor excitement around the Fed’s confirmation that a rate cut is coming soon. In the event that the Federal Reserve decides to cut interest rates in September, all risk-on assets could go parabolic. In the case of AlchemyPay, which has a mix of strong fundamentals and a low market cap, the move could be a rally of 100x or more in gains.

Technical Analysis – AlchemyPay Weighed Down By Broader Market Intraday

After a parabolic rally on Friday, AlchemyPay, like the rest of the market, entered a correction over the weekend. The correction is still strong today,  and AlchemyPay is trending towards the $0.02 intraday support. In the event that the support holds and there is a rebound, the first target for AlchemyPay would be Friday’s high of $0.0229.

ACH
Source: TradingView

A rally through this resistance could see AlchemyPay rally to $0.10 in the short term. On the other hand, if bears push AlchemyPay through the $0.02 support, then there is a likelihood that prices below $0.01 could become reality in the short term. However, with interest rates likely coming soon, AlchemyPay is more likely to see a rebound off the $0.02 support.

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