Anchor Protocol Price Plummets as UST Woes Worsen

Summary:
• The Anchor Protocol price is falling sharply. We explain what to expect now that the UST woes have worsened.

The Anchor Protocol price has crashed harder than most DeFi tokens. The ANC token has moved below $1 and fallen to the lowest level on record. The current price of $0.80 is substantially lower than its all-time high of $6.23. As a result, the network’s total market cap has fallen to about $275 million. 

Anchor Protocol is one of the most popular decentralized finance platforms globally. The platform allows people to deposit money and make returns. It also has features that make it possible for people to borrow money. It is the biggest platform in Terra’s blockchain. 

The Anchor Protocol price is crashing after the Terra USD stablecoin lost its peg, which caused its price to plummet below $1. At the time of writing, the coin is trading at $0.81. While this is not the first time the stablecoin has decoupled, it is the first one since the Luna Guard Foundation decided to back it up with a basket of cryptocurrencies like Bitcoin and Avalanche. These coins have also declined sharply lately.

Therefore, the Anchor Protocol price has declined sharply as investors price in more outflow from the platform. This is notable since Terra USD is the main currency used in this ecosystem. In a statement, the Anchor Protocol said:

Anchor Protocol price prediction

The ANC price has been in a slow downward trend recently. This sell-off accelerated when it crashed below the important support level at $1.5856, which was the lowest level since April 30th. This decline has pushed the coin to an extremely oversold level. It also remains significantly lower than the Ichimoku cloud and other moving averages.

Therefore, while the overall trend is bearish, there is a likelihood that the Anchor Protocol will have a relief rally in the coming days. If this happens, the coin will likely retest the important resistance at about $1.