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- 1 Compound TVL has been on a decline since the mid of 2022 and is currently near $1.84 Billion
- 2 COMP price is currently favoring a bearish momentum. It has seen a decline of 10% in the past seven days.
Compound is a defi lending protocol that allows users to earn interest on their deposited crypto. When users deposit in the protocol they receive cTokens which can be redeemed. Meanwhile, a borrower can take a secured loan while depositing the collateral. Compound is an open lending platform that allows users to deposit and earn interest in a trustless way. One can earn up to 4% APR on USD balances without any complexity.
Compound ecosystem has approximately $2.2 Billion in collateral across 5 markets. COMP has a TVL of $1.85 Billion which has been on a continuous decline from the past few months as per Defilama. The revenue of the ecosystem has also been seeing consolidation and has an average of $5.4k. The active users of the protocol have also been in decline. The median APY of the COMP has been in decline for the past few weeks.
Compound has a market cap of $245 Million and is ranked 115th in the CMC. The social mentions and engagements of the protocol have been seeing a decline as per lunar crush. The V/M ratio of COMP suggests a consolidated trend in price.
Will COMP Hit the Floor of $25?
The weekly technical chart of Compound hints towards a bearish momentum in price. On the daily chart, COMP price is in a strong bearish trend. COMP price is currently trading near $32.46 with a small drop in the intraday session. The upside momentum of COMP can see a halt near the value of $40. Meanwhile, the downside trend of the asset price can see a halt near $30. COMP price is trading below the 50 and 100 Daily Moving Average. There can be a negative crossover in the future which can push the price down in future.
The RSI of COMP is near 37 highlighting its presence in the oversold zone. There is a downside slope in it which suggests a bearish momentum in price.
Summary
Compound has been seeing a decline in active users and TVL from the past few months. COMP price is currently in a bearish trend and can see a new high in the future.
Technical Levels
Major Support:$30
Major Resistance:$38
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
