ABBC Coin, previously known as Alibabacoin, experienced a surge of 106.17% on Tuesday, reaching its mid-March peak of $0.367. However, the rally lacked significant trading volume and the pair has since corrected lower, indicating an overbought condition. The rally, attributed to a trademark dispute settlement with Alibaba, faces challenges due to a lack of fundamentals to support further growth.
ABBC Coin Soars Over 100% Against US Dollar, Raising Concerns Over Lack of Supporting Fundamentals
On Tuesday, ABBC Coin, formerly known as Alibabacoin, experienced a remarkable surge of 106.17%, propelling it back to its mid-March high.
The ABBC-to-dollar exchange rate surged to a peak of $0.367 towards the end of the Asian trading session. However, the pair subsequently corrected downwards by approximately 14%, suggesting that the asset had become overbought. As the US trading session progressed, ABBC faced the prospect of further selling pressure, primarily due to the absence of fundamental factors supporting the continued uptrend.
Despite the significant price increase, ABBC's daily trading volume amounted to a mere $46 million, while the cryptocurrency's market capitalization climbed by over $60 million. This disparity, where the daily volume falls below the total market cap increase, presents a curious anomaly.
The bulk of ABBC's trading activity occurred against Bitcoin on the TOPBTC crypto exchange, accounting for roughly 16.50% of the total volume. However, TOPBTC has faced criticism from customers, with allegations of an unreliable fund withdrawal system and sluggish customer support. ForexBrokerz, an independent review website, expressed skepticism regarding the exchange's credibility:
"They are not a member of ADCA, the local organization of companies in the space. Their trading software appears decent, but the support for very alternative and for a lack of a better word 'dead' coins is troubling. That being said, the countless claims this exchange is actually a scam are the most troubling factor."
Notably, the recent ABBC rally lacks substantial fundamental drivers. The only significant event preceding the surge involved a trademark dispute between the Chinese e-commerce giant Alibaba and the ABBC Coin Foundation. However, this settlement was reached nearly a month ago and entailed ABBC's agreement to cease trading on the Alibaba brand.
Market experts caution that the absence of fundamental support for the ABBC rally poses a significant risk. Without clear drivers for the price increase, the asset may experience a sharp correction as investors seek to cash in on their gains.
