The COMP token, native to the Compound lending platform, has turned bullish in recent days. If you want to know where the price can go next, then you should check out this analysis.
At the time of this writing, COMP is trading at $ 424.23, accumulating a loss of 2.20% in the last 24 hours, but still maintaining a large rise of 46.53% in the last 7 days.
With Compound being the third largest DeFi app in the ecosystem, its market leadership is one of the main factors behind the recent price hike.
This protocol has today about $ 7.400 million in locked value, only below Curve and Aave, which have $ 8.700 million and $ 7.800 million respectively.
If we look for a more specific catalyst, it is possible that the launch of the Compound Treasury was that gasoline to push the price up.
The Treasury compound is designed so that companies and financial institutions can access the benefits of the protocol, which are a fixed APR in dollars of 4%, with daily liquidity and without the complexity of cryptocurrencies.
Technical analysis of the Compound token after the big bullish jump
The large weekly bullish candle that just closed is sending a very positive signal for the Compound token, as it is signifying the invalidation of the bearish intentions of the last few months, and the resumption of a great trend that took this coin to an all-time high. of $ 911.
If we look at the historical behavior, we have that the fall of the last months was a correction towards the 78.6% Fibonacci, which seems to have come to an end.
The inability of the price to break through the support at $ 267.55 gave us a good sign of exhaustion. Now the behavior is confirming that bulls are the dominant force.
With the break of the resistance at $ 406.25, the ground is clear until the supply zone left by the all-time high, close to $ 800.
However, knowing that we are seeing a resumption of a major trend, that resistance may not be a big problem. Fibonacci points us to targets of $ 1,100 and $ 1,400.
Short-term key levels
In the daily time frame we see how the bulls have clearly regained control, manufacturing ever higher lows and highs.
Today the Compound token price is being hampered by resistance at $ 464, however bullish intent tells us that it should be traversed soon.
Currently the price may be initiating a short-term correction. Then we could see the search for resistance at $ 547.65 minimum.
To think about selling, the support at $ 332 must be crossed. Still, a scenario like this could spell a major trend reversal, so it shouldn’t be too worrisome if it happens.
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