Anchor Protocol (ANC) Reaches New All-Time Low After Sharp Fall

Anchor Protocol (ANC) broke down from a crucial support level on May 5 and reached a new all-time low price on May 11.

ANC has been decreasing at a very fast pace since reaching a high of $6.20 on March 5. On April 30, it initially bounced above the $1.70 horizontal support area (green icon). This is an important area since it had been providing support since Aug 2021. 

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However, the bounce was short-lived and the price broke down from the area on May 9 and has been falling at an accelerated rate since. 

So far, ANC has reached a low of $0.143 on May 11. Measuring from the March high, this is a decrease of 96.66%.

Will ANC bounce?

Cryptocurrency trader @livercoin tweeted a chart, stating that the price could soon drop towards the $1.20 level.

ANC re-test
Source: Twitter

Since the tweet, has dropped well below it and proceeded to reach a new all-time low price of $0.14.

In the period since May 6, ANC has decreased by a full 94% without experiencing any significant retracement. 

While the two-hour RSI had been falling for this entire period, it has now broken out from its descending resistance line. This is a sign that the price could follow its lead soon. 

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Additionally, the RSI has also generated bullish divergence (green lines), another potential sign of an impending bounce. 

If one occurs, the closest resistance area would be at $1.

Short-term ANC
ANC/USDT Chart By TradingView

Wave count analysis

The wave count indicates that ANC is mired in a five-wave downward movement. In it, it has just completed a very extended wave three (black). 

As a result, a significant bounce could occur. 

So, the wave count is in alignment with the short-term readings and suggests that a bounce is likely.

Wave count
ANC/USDT Chart By TradingView

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here


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