Dynamic Supply

Anything outside of the neutral zone means supply is changing, adding a second dimension of risk. This includes the majority of AMPL price action historically.

The price target acting as a trendline for AMPL means that, depending on demand, it can act as resistance or support (+/-5% within the neutral zone).

This creates a "rubber band" effect, with the AMPL price snapping back out of the neutral zone.

Below is a look at AMPL over a year versus the neutral zone:

AMPL's price routinely has meaningful reactions to the neutral zone.

Considering a dynamic supply, there are two possible scenarios:

1. Supply is increasing

2. Supply is decreasing

Scenario 1 describes AMPL during a Positive Rebase cycle when Price > Expansion Threshold.

Scenario 2 describes AMPL during a Negative Rebase cycle when Price < Contraction Threshold.