The Anchor Protocol price prediction is for the token to continue to be on life support, except something dramatic happens. The recent collapse of the ANC/USDT pair can be linked to the demise of the LUNA/UST peg and the subsequent apocalyptic destruction of the Terra token.
It has emerged that the Celsius network pulled out half a billion dollars from Terra’s Anchor Protocol during the calamitous run to the south by the Terra token. The Terra network hosts Anchor Protocol, a crypto lending and borrowing platform on the network. The rescue attempts to save the Terra network is probably what has kept Anchor from being declared dead and buried. However, the situation remains precarious as the situation with Terra continues to evolve.
The Anchor Protocol’s unique selling proposition was the 20% yield it offered investors who deposited the TerraUSD (UST) stablecoin. But with the collapse of the peg, despite nearly 80,000 Bitcoin being deployed to save it, companies and users have lost colossal amounts of money. The situation has stirred up new discussions about the regulation of stablecoins.
According to the Luna Foundation Guard, the latest effort to save Terra would cost $1.5 billion. But if regulators take a stand against stablecoins, any Anchor Protocol price predictions of recovery may be in vain.
A look at the 1-hour chart indicates that the 0.0928 floor is holding up the ANC/USDT pair from falling into the Antipodes. Presently, the price trades between this floor and the 0.2108 price mark, acting as the ceiling.
Further recovery on the ANC/USDT pair requires the bulls to take out this ceiling, which will bring 0.3587 into focus as a new resistance mark. Above this level, short-term targets to the north are seen at the 0.5085 price level and the 0.6000 psychological price mark. 0.7593 and 0.9185 are highly ambitious targets to the north that are presently not within the range of the bulls.
On the flip side, a breakdown of the support at 0.0928 brings the 13 May low at 0.0700 into the mix. Below this price mark, new record lows may form well below the 0.001 price mark.
This post was last modified on May 17, 2022, 12:38 BST 12:38