Anchor Protocol’s rally of more than 22% in early trades Thursday isn’t anything new in the crypto space, yet it might be for this Terra (LUNA)-based decentralised finance protocol.
ANC, the governance token on the Anchor network has skyrocketed by more than 77% in the past 7 days and was up more than 22% intraday today before paring some of the gains.
Looking at the token’s price movement, we see it traded just above $1.34 on 3 February 2022. Fast forward to today, ANC hit a high of $4.95 against the US dollar, buoyed by massive buying pressure for the token likely due to the potential rewards from staking it at an up to 32.69% APY (annual percentage yield) on Binance.
Another token, Highstreet (HIGH) attracts up to 40.19% APY, although HIGH is down more than 6% in the past 24 hours.
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ANC pares gains after 22% rally
Anchor Protocol’s token was trading around $4.59 at press time, having shed some of the early gains seen today. However, it’s still impressively outshining other tokens by a +15% return on the day.
Can ANC price go higher? Probably, especially if buying pressure remains intact amid the scramble to lock tokens for the staking rewards. Notably, though, the upside also highlights the reality of crypto markets- assets are highly volatile and what was rocketing today could plummet with the bleep of a second.
But given the positive outlook for the Terra blockchain ecosystem after its recent $1 billion Bitcoin-denominated reserves for the dollar-pegged TerraUSD (UST) stablecoin, things could be even rosier for ANC short term.
According to one analyst, Javon Marks, also thinks ANC price is not done with the upside path for now. According to him, the likelihood of going all the way to above $6.00 is possible if bulls hold the support level at $3.96.
“ANC’s 9h chart remains on EXTREME ALERT as technically, there is MORE! ANC being above $3.96 allows for it to have no resistance level until the target at $6.61! This means, Anchor Protocol is setup to climb over 30% more to reach $6.61 and looks to be in the process,” Marks said as ANC/USD climbed above the $4.00 level.
ANC reached its all-time high of $8.23 on 19 March 2021.