Compound (COMP) is a decentralized finance (DeFi) lending protocol that allows users to earn interest on their cryptocurrencies by depositing them into one of several pools supported by the platform. When a user deposits tokens to a Compound pool, they receive cTokens in return.
These cTokens represent the individual’s stake in the pool and can be used to redeem the underlying cryptocurrency initially deposited into the pool at any time.
According to the technical analysis on TradingView by altFINS, COMP has recently shown a bullish trend reversal. The price broke above the 200-day moving average with significant volumes, signaling an uptrend resumption. After breaking above $70, COMP hit a high of $87. However, some profit-taking selling pressures are expected, which could offer an attractive swing entry in the uptrend.
The trend is an uptrend across all time horizons (Short- Medium- and Long-Term). The momentum is mixed as the MACD Line is below the MACD Signal Line (Bearish), but the RSI is above 55 (Bullish).
COMP seems to be taking a breather, retracing its steps before it potentially ascends further. This often offers traders a buying opportunity. The nearest support zone is currently set at $60. This level previously served as resistance and could now play a key role in holding up the price. If that level fails to hold, the subsequent support zone is seen at the $47 mark.
On the flip side, the bulls will need to conquer a few hurdles. The nearest resistance zone is at the formidable $70 level. Breaching this could catapult the COMP price higher, with the subsequent resistance zone at the lofty $93 mark.
As per CoinMarketCap, the live Compound price today is $60.73 with a 24-hour trading volume of $146,099,495. The current CoinMarketCap ranking is #82, with a live market cap of $472,968,933 USD. It has a circulating supply of 7,787,825 COMP coins and a max. supply of 10,000,000 COMP coins. The Compound is down 9.88% in the last 24 hours.
The Compound (COMP) has shown a bullish trend reversal and is currently in an uptrend across all time horizons. However, with the current market performance showing a slight dip, it’s crucial for potential investors to keep an eye on the market trends and make informed decisions.
Disclaimer: The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView or CoinMarketCap. Please do your own research before investing.
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