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- COMP price has seen a gain of 3.61% in the 24-hour time frame. Meanwhile, the COMP/BTC pair sees a positive momentum with an increase of 4.4%.
- Compound has hit a landmark of $15B in lending. Meanwhile, the technical indicators do not show any bullish signs for the price.
Compound is currently ranked 45, with a market capitalization of $2,582,683,185.The volume ($$394,607,280) of the coin has increased 36.37% in the 24-hour time frame. The volume to Market capitalization ratio for the coin is 0.1579. If the ratio goes above 0.8, then a buying rush can be seen.Comp price forecast a gain of more than 20% in upcoming days.
Why to Invest in Compound (COMP)?
Compound is a defi lending protocol that helps traders borrow money and earn interest. Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes. It is a vast network of the noncustodial lending platform and other financial networks powered by smart contracts. Borrowers can take any loan from the secured pool of COMP by depositing collateral.
Defi has seen a rise in the last couple of years. With the increase of Defi, COMP has also boomed 10X from the previous year. Currently, Compound holds 19% of the total value locked in the Defi. The total amount for lending in COMP has increased from $10B to $15B in less than two months.
Technical Indicators Projects An Upcoming Downtrend For COMP Price
The weekly technical chart for COMP showcases a bearish momentum. Compound price is showing signs of negative momentum on coming to the daily chart. Comp price is trading above 50 and 100 Moving Average. The 50MA price is at $441, making it temporary support for the coin. The coin’s resistance on the upside will be at $600, and on the downside, it will see a bounce back from $475.Compound price broke above the semi-circular top for a new high, but it is currently retracing back to the lower levels. If the price breaks below the support of $475, then it can reach up to $400 in no time.
RSI(Bearish): It is currently trailing at 63.62, showcasing its presence in the overbought zone. There is negative slope formation in RSI, which suggests bearish momentum. The overall sentiment of the RSI is bearish.
Conclusion
COMP price projects a downtrend for a short period. Compound has seen an increase in the defi lending value, and it can positively affect the price. The COMP/BTC pair can also see a bullish move. An Investor should do their due diligence before investing.
Technical Levels
Major Support:$475
Major Resistance:$600
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
