The Black Bull [ANSEM] is up by more than 25% in the past 24 hours, extending its two consecutive days of double-digit gains. Its weekly returns have exceeded 56% as its market cap surpassed $150 million.
Apart from the technical breakout, the memecoin was driven by whales and its utility expansion into a launchpad. It serves as the governance token for the Ansem.io launchpad. Here is how:
Ansem.io economy fuels token supply scarcity
A few days after expanding its utility, the ANSEM economy seems to be fueling the surge. There was a market-wide surge in launchpads, including PONS, which is built on Robinhood Chain.
As a launchpad, it was using its revenue to bring a supply crunch. For the time of its existence, the protocol has burned over 2.43 million ANSEM, which is equivalent to 0.50% of the supply.
This reduction resulted in a price surge as the memecoin’s demand was present.
That is not all there is.
Over 1,177 projects had been launched, accounting for $382 million in volume traded.
Additionally, active holders continued to rise, surpassing 132K, indicating capital inflow into the token. Holders are twice the number they were a month and a half ago.
In addition, whales were aggressively buying the memecoin. A fresh wallet accumulated 2.1 million tokens worth $513K from the Coinbase exchange, as per Stalkchain.
In total, the wallet bought 10.20 million ANSEM for $2.80 million, moving its ranks from the seventh to third among large holders. It now holds 1.02% of the supply.
However, the airdropping of ANSEM tokens is balancing the surge in prices. The deployer noted over $600K had been distributed to holders on the first day of the Ansem.io platform.
ANSEM price action assumes an ascending trend channel
On the charts, the memecoin has completed its correction after hitting an all-time high (ATH) of $0.45. Following a sideways bottoming structure, ANSEM is trending up in a channel.
The Money Flow Index (MFI) is at 67, indicating capital inflow, while the MACD reinforces the bullish strength. These readings put the ATH of $0.45 in focus.
However, Ansem.io’s governance token is trading at the top of the channel, which could prompt a short-term end to this rally. The price may trade back to the rising support of the channel, around $0.25, before making a higher high.
Still, the memecoin may not necessarily trade back to $0.25, as the demand level at $0.30 may mitigate the correction.
Final Summary
- ANSEM surged by more than 25% as its launchpad economy and whales fueled the rally.
- ANSEM’s price is surging inside a rising trend channel but faces the resistance at the top of the pattern.