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- 1 Compound has been in a halt over 50 DMA but can see a breakdown to $40
- 2 Technical indicators of COMP are favoring the downside trend. It has seen a drop of over 1% in BTC pair
Compound is a decentralized finance protocol built on the Ethereum blockchain which allows users to lend and borrow cryptocurrencies without the need for a central entity.The protocol uses smart contracts to automate the lending and borrowing process, allowing users to earn interest on their crypto assets or borrow them at a variable interest rate. Compound allows users to earn interest on their crypto assets while still maintaining control over them. This is because users lend their assets to the Compound protocol, which then distributes them to borrowers in exchange for interest payments. Users can withdraw their assets at any time, and earn interest over time.Compound’s native token, COMP, allows users to participate in the protocol’s decision-making process by voting on proposed changes and updates.It gives users a voice in the direction of the protocol and helps to ensure its continued growth and development.
Compound has a market cap of $373 million and is ranked 110th in the cryptoverse. Volume of the asset price has seen a decline of 3% in intraday session. Volume to market cap ratio of COMP suggests a consolidated trend in price.
Are Bulls Of COMP Price Giving Up?
The weekly technical chart of the COMP suggests a weak downside trend.On the daily chart it is trading near the value of $51 with a small loss in the intraday session.Resistance of the Compound price can be seen near $70.Meanwhile the support of the asset price can be seen near $40. It is trading above the 50 and 100 Daily Moving Average. It is taking support near the 50 Daily Moving Average. It can see a reversal trend in the future.
RSI of the asset price can be seen near 48 suggesting its presence in the neutral zone.There is a downside slope which can push the asset price to a new low.
Conclusion
Defi market is currently in a halt but can see a breakout in the future. COMP price is currently in a consolidated trend and can see a new high in the upcoming months.
Technical Levels
Major Support:$40
Major Resistance:$60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
