ANSEM’s 2.43M token burn – Can launchpad demand sustain the rally?

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.