Will ANKR Reverse the Bearish Trend?

Anchor Protocol is a popular lending protocol within the crypto space. It offers up to 19.5% yield on stablecoin deposits, and the way it works is simple:

Lenders on this protocol can deposit Terra (UST) tokens to earn attractive rates on their investments, while borrowers can utilize their LUNA tokens as collateral without relinquishing control of their tokens.

ANKRUSD: April 2022 - August 2023

The price of Anchor Protocol’s native token, ANKR, has fallen in early April of 2022 after growing significantly. This resulted in the break of one of the most reliable support levels of this cryptocurrencies, situated by the $0.055 mark.

Another strong support level marks itself by the $0.02 mark. ANKR’s price-tag has attempted to break this support level 6 times with no success: April 2019, August 2020, February 2021, November 2022, June 2023 and August 2023.

Encountering a sturdy support mark, the trend is shifting from bearish to bullish through a reversal pattern called the Head and Shoulders. The candlesticks have already formed the left shoulder and the head, and are completing the right shoulder.

If the right shoulder is drawn and the figure becomes complete, ANKR may shoot towards the resistance level of nearly $1 to then potentially retrace to $0.55; the neckline of the pattern.

This could signal the beginning of a new bullish trend to be established. Hence, the coming weeks and months may be quite interesting for ANKR traders, as the cryptocurrency’s price could reverse the bearish trend or perhaps continue to consolidate within the range of the two sturdy support levels.