Anchor Protocol Share Price Forecast: ANC Bucks the Trend

Anchor Protocol cryptocurrency price developed against the negative trend on the crypto market in recent days. The ANC token has recovered and increased today to its highest level since March 11th. The coin was trading at $3.40 in the meantime, which was about 42% above its lowest level this year.

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What is Anchor Protocol?

Anchor Protocol is one of the leading platforms in the DeFi industry. It is built on Terra’s Smart Chain and allows users to earn an attractive return by simply staking their coins. Like many other DeFi platforms, Anchor offers the ability to make an investment without a registration, account minimum, and other restrictions.

Anchor Protocol has experienced strong growth in recent months. The total amount of coins in the ecosystem has grown to over $18 billion. These funds are divided into deposits and collateral. Deposits total over $12 billion, while collateral has grown to over $6.6 billion. The platform has also established a revenue reserve of UST 333 million.

ANC is the governance coin for the Anchor Protocol. It is used by members of the decentralized autonomous organization (DAO) to propose changes. People also hold the coin to get a good return.

The ANC price rises as investors expect Anchor Protocol to grow strongly. This is the case even if the reserves decreased slightly after the decision to readjust the interest rates every month. Investors believe that the change will lead to lower returns for depositing coins into the ecosystem. Ideally, the platform will either raise or lower interest rates by 1.5% every month.

Anchor’s share price is also rising after the recent Prop 65 vote. Members are voting to redirect all remaining $ANC airdrops into the community pool. Most users voted in favor, although progress is still slow. The price is also rising after Binance announced that it will introduce UST staking with a 19% yield.

Anchor Protocol Price Forecast

The four-hour chart shows that the ANC price bottomed out at around $2.4 this year. Since then, the coin has been in a slow uptrend. It managed to overcome the important resistance level of US$3.08, which was the last high recorded on March 30th.

The price also rose above the lines of the 25- and 50-day moving averages, while the Relative Strength Index (RSI) slipped into the overbought territory. As a result, the coin will likely continue to rise as bulls target the next key resistance level at $4.0. Here we explain how to buy Anchor and other cryptocurrencies.

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(Featured image by mohamed_hassan via Pixabay)

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