The Anchor Protocol price has defied gravity. While a sea of red dominated the cryptocurrencies industry, ANC bounced back and rose to a high of $2.25, which was the highest level since April 20th. It has risen by more than 40% from the lowest level this week. As a result, the coin’s total market cap has risen to about $738 million.
Anchor Protocol is a leading blockchain project built in the Terra ecosystem. It is a DeFi platform that enables people to borrow and save cash in the ecosystem. According to DeFi Llama, it is the third-biggest DeFi platform with a total value locked of more than $16.9 billion. On its website, the network says that it has a TVL of more than $19 billion and a yield reserve of 189 million UST.
The Anchor Protocol price is rising as investors react to the growth of the ecosystem and its exciting yield of 18%. While the rate was free-floating in the past, the developers decided to adjust it every month. This means that it will rise or fall by 1.5% every month. While this readjustment caused an initial drop in ANC price, there is a realisation that it was a necessary move.
Anchor Protocol price prediction
The ANC price has made a strong recovery in the past few days, even as other digital coins crashed. It has been trading at the highest level since April 21. Along the way, it has moved above the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has moved slightly above the overbought level. Other oscillators have also kept rising.
Therefore, there is a likelihood that the coin will continue rising as bulls target the next key resistance level at $2.50. A move below the support at $1.8 will invalidate the bullish view.
