10 Mar 2022

Bitcoin, Luna and Anchor Protocol Market Analysis from the past week.

Market Analysis from the last week of the most influent markets in the cryptocurrency world.

BTC/BUSD Market

Over the last few weeks, given the current global events, markets have been quite erratic and volatile, particularly in traditional markets and commodities. Due to the sanctions that many western countries are imposing on Russia, the same sanctions that are sinking the ruble to the lowest prices in over 30 years, many expected Bitcoin Russia use to increase as a way to circumvent these sanctions. Whilst this might be true in principle, Bitcoin price does not seem to have reacted accordingly, and instead, after a brief push to the $43k resistance, it seems to have already retraced and signal further downwards movement.

Bitcoin price today is still signalling uncertainty and a potential lateral move, meaning it could go either way. Over the last few weeks, BTC price has swung both ways, above the current support towards the resistance, as well as below this level, making it hard to predict what move might follow. Bitcoin today seems to have held over the current $38k support level, and slowly diverging towards the 20EMA and the 50EMA. It is also likely that prices will continue to range sideways whilst both Moving averages lower to the current support level.
BTC/BUSD weekly candles chart with supports and resistance
BTC/BUSD weekly candles chart with supports and resistance
Bitcoin current price predictor would suggest that there are two really opposite scenarios, with opposite outlooks that could play out, depending on how prices hold over the next few days. The first scenario would be Bitcoin holding the current support level ($39k) and consolidating between this level and the resistance of $40-43k. This would likely be bullish and see eventually BTC break above the resistance level, ideally following a break and retest of the level where it turns into support before moving higher towards the $50k area.

The second scenario would see Bitcoin USD getting rejected several times at both the 20EMA and 50EMA, as we currently saw, followed by failing to hold the current support level range, resulting in lower levels being reached and prices potentially moving towards the 100EMA, or around $32k. This would be a really bad scenario for the crypto market as a whole, and other major coins like Ethereum or Ripple will likely see even bigger losses than BTC.

Relevant BTC News

Recently in crypto relevant news Ukraine is now accepting cryptocurrency donations in Bitcoin, Ethereum and USDT. This is another major application of cryptos that had not yet been used, and that could potentially be used in future conflicts. Due to the speed of transactions and the fact that receivers only need to have a wallet, many people have already been able to donate and contribute directly to Ukraine, helping local people.

Several Bitcoin Ukraine relief programs have already been set up with millions of people donating daily to try to help the citizens of Ukraine in this time of war. It has been estimated that Ukraine has received close to $100M in crypto donations. The president of Ukraine said that "he shares our vision" that the use of crypto could be a "breakthrough from an economic standpoint" and that "we have the total support of the president at this point."
Donations can be made to the official waller of the Ukraine government - See Ukraine Gov Twitter.

LUNA/BUSD Market

Terra (Luna) coin is a trustless, programmable blockchain that offers fiat-pegged stablecoins to provide more stability when conducting cross-border payments. Users can hold their Terra coins, known as Luna, into their Terra wallet, whilst monitoring all of the relevant blockchain information on the Terra block explorer known as Terra Station. Terra station wallet can be easily connected to Myetherwallet and other ledgers where users might hold their tokens.

The Terra Luna ecosystem also has several applications based on its technology, such as TerraScan, a software to manage and process all types of point clouds, Terraswap, an open-source software that provides automated liquidity on Terra for users and DeFi applications, as well as Orion money, an applications for users to earn interest on their stablecoins and Anchor terra, a stacking solution for proof of stake blockchains.
LUNA/BUSD weekly candles chart with supports and resistance
LUNA/BUSD weekly candles chart with supports and resistance
Lately, unlike many financial markets, including Bitcoin, Terra LUNA seems to be going on its own bull-run, already pushing for a new ATH. Bitcoin and other major cryptos, like Ethereum and Ripple, are still ranging and consolidating around certain levels, implying that investors are still really uncertain about the direction in which these markets will be headed.

Luna followed a period of retracement after reaching new ATH back in December 2021, dropping from new ATH prices of $100 all the way to below $45, in a move that saw prices drop by more than 50%. This move was in line with most of the crypto market, which saw the majority of coins fall by large percentages over this time. What differentiated luna from many of the other coins is that it formed a double bottom pattern in late January and early February, where prices skyrocketed after it. Initially, prices retested the $62 resistance level, but a few hours later raised way above this resistance level as well as the following and went as high as $100. Prices are still consolidating around ATH levels, and potentially into price exploration.

LUNA price prediction looks really positive as the price continues to push upwards. As prices reach ATH levels there will have to be some consolidation, but this could be positive and see prices reach even higher levels. It's likely that if prices hold for the next few days, we might see.

Terra (LUNA) news

In recent crypto news about LUNA, the crypto has been listed on one of the biggest derivative crypto exchanges, FTX. Terra (LUNA) listing on FTX over a week ago has also positively contributed to the price, seeing an increase of over 30% from the price before listing, and growing to be really close to XRP in total market capitalization, according to Coinmarketcap.
Some people speculate that this is also in part been caused by leaked news that the Biden administration, US government, publication will be in favor of crypto and detail how they can be a more focus point for the US economy; this news would be extreme bullish and could have a direct impact on the prices of several crypto currencies.

ANC/USDT Market

Anchor Protocol terra is a decentralized money market built on the Terra blockchain that offers UST (Terra's U.S. dollar-pegged stablecoin) depositors a 20% APY. ANC, Anchor crypto's inflationary protocol token, offers holders governance rights as well as a percentage of protocol earnings. The fact that USD anchor protocol is pegged to the terra stablecoin makes that whole solution provides more liquidity to Terra due to its use case. Anchor is one of many protocols on Terra that expands its use cases and applications in the Defi crypto space. The protocol has its own coins, the Anchor protocol coin.

Since its launch in mid-2021, Anchor protocol's price has had its ups and downs, ranging between lows at $1.40 and highs of $6.30, but mainly staying around the $3 price level. After several months of lateral movement to close out 2021, the coin dropped substantially in early 2022, reaching its lowest prices in over 6motnhs, around $1.40. This move was short-lived and saw prices bounce back and even reach the $6 level briefly, before retracing back to lower supports.
SUSHI/BUSD weekly candles chart with supports and resistance
ANC/USDT weekly candles chart with supports and resistance
Anchor price looks really positive, especially on lower time frames, where we can see a break of the $4 resistance level before moving upwards, in the move that has retraced ever since. However, this could play out as a break and retest, as prices are currently retesting the resistance level now turned into a support. With prices also above all of the moving averages, if they can hold over the current levels it's likely to see a continuation upwards of the current move.

Anchor protocol prediction looks really positive based on the recent price movements of the coin. Prices might still consolidate and lateralize in the short term based on the abrupt movement upwards. However, as long as they stay above all the major moving averages levels (20EMA and 50EMA), and hold this support, it's likely to see a bounce and a move upwards back towards the $6. This level is likely to create some resistance in the short term but then would ultimately be broken and see Anchor in new ATHs.

Relevant Anchor Protocol (ANC) news

In recent crypto news about Anchor, after discussing with the community with an AMA session in the Anchor Governance Forum, an upgrade for the ANC tokenomics model has been suggested. The idea is to introduce Retrograde, a new protocol (Similar to Convex on ETH) building on Terra that is ushering in a new governance structure & is working closely on Astroport and Anchor. This would enable users to lock ANC for a period of 1-4 years to receive increased voting power & boosted ANC emissions in the form of subsidies to the borrowing rate, as well as to align incentives for different stakeholders on a protocol like Anchor.
This would have several implications on the governance of ANC but would be a great sign of development and improve the blockchain as a whole resulting in higher use cases.
BTC/BUSD, LUNA/BUSD, and ANC/USDT are available for trading on yanda.io dApp, together with hundreds of different market pairs.

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Author: Matteo Poole
info@yanda.io