The COMP token, native to the Compound lending platform, has turned bullish over the past few 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 trades 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.
Compound being the third largest DeFi application in the ecosystem, its market leadership is one of the main factors behind the recent price rise.
This protocol today has about $ 7,400 million in blocked value, only below Curve and Aave, which have $8,700 million and $7,800 million respectively.
If we look for some more specific catalyst, it is possible that the start-up of the Compound Treasury has been that gasoline to push the price up.
The compound Treasury 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 great bullish jump
The big bullish weekly candle that has just closed is casting 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 brought this coin to an all-time high of $911.
If we look at the historical behavior, we have that the fall of the last few months was a correction towards 78.6% of Fibonacci, which seems to have come to an end.
The price’s inability to break through support at $267.55 gave us a good sign of exhaustion. Now the behavior is confirming that the bulls are the dominant force.
With the resistance breaking at $406.25, the land is clear to the bidding zone left by the all-time high, surrounding $800.
However, knowing that we are seeing the resumption of a larger trend, that resistance may not be a big problem. Fibonacci targets us at $ 1,100 and $1,400.
Short-term key levels
In the daily timeframe we see how the bulls have clearly regained control, manufacturing ever higher minimums and maximums.
Today the price of the Compound token is being stymied by resistance at $464, however, bullish intent tells us that it should soon be traversed.
Currently the price may be initiating a short-term correction. Then we could see the search for resistance at $ 547.65 minimum.
To think of sales, support at $332 must be traversed. Even so, a scenario like this could mean a reversal of the larger trend, so it shouldn’t be too worrying if it happens.
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