AB token experiences a remarkable 46% surge driven by the highly anticipated launch of USD1 on AB Chain. With whale accumulation and institutional interest on the rise, the crucial question arises: Can the momentum withstand upcoming technical resistances?
The launch of USD1, a native stablecoin integrated directly into AB Chain, represents a strategic turning point for the ecosystem. This new monetary infrastructure now allows users to conduct digital dollar transactions without leaving the AB blockchain, eliminating friction related to bridges and external conversions.
The production deployment of USD1 paves the way for new DeFi applications on AB Chain, including lending protocols, optimized liquidity pools, and more sophisticated derivative products. Developers now have a stable monetary base to build decentralized financial services competitive with giants like Ethereum or Solana.
The announcement triggered a massive capital influx into AB, with trading volume increasing by over 200% on major platforms. This rapid adoption reflects market expectations for stable payment solutions on high-performance alternative blockchains. Initial on-chain data reveals that over $50 million in USD1 was already minted within the first hours following the launch.
On-chain data shows marked whale accumulation of AB over recent weeks, with 15 to 20 wallets each holding over one million tokens strengthening their positions for a total exceeding $100 million before USD1’s launch. This behavior, typical of pre-bullish phases, created latent buying pressure that materialized upon the official announcement. Meanwhile, exchanges observed massive withdrawals of AB to private wallets, reducing supply on order books and amplifying volatility. Today, over 65% of circulating supply is held by addresses inactive for selling for over three months.
After a 46% surge, AB now faces major resistance around $0.85, a closely monitored technical and psychological threshold. A confirmed breakout with sustained volumes could open the path toward $1.20, aligned with the Fibonacci 0.618 retracement. The 4H RSI near 75 shows overbought conditions, however, indicating short-term consolidation risk despite globally positive momentum.
Continuation of the rally will depend on the market’s ability to absorb profit-taking. Support zones at $0.65 and $0.58 will be decisive during any potential pullback: If they hold, they will validate the strength of the ongoing bullish movement and confirm a healthy market structure for continuation toward new highs.
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