COMP is the native governance token used by Compound. Finance, the leading DeFi lending protocol. COMP’s distribution began on June 15, 2020, and is received by users who provide and borrow funds from Compound Finance. COMP/USD has rebounded today to trade around $183.4 after its initial pump and dump. Compound got off to an impressive start with an initial $590 million market capitalization to a $910 million growth. Over the past few days, the trading volume has significantly risen from $5 million to $105 million with a total market cap of approx. $467 million on July 4. One of the main development activities for the crypto-currency industry was the public launch of COMP. As per DeFiPulse.com, the launch of COMP itself triggered a 50 percent growth in the DeFi ecosystem in a single week. The launch of COMP, even if prices plunge, proves that releasing a governance token with a proper incentive framework may enhance DeFi adoption, albeit Compound (COMP) holds DeFi leading position.
*COMP/USD has rebounded today to trade around $183.4 after its initial pump and dump
*Over the past few days, the trading volume has significantly risen from $5 million to $105 million with a total market cap of approx. $467 million on July 4
*As per DeFiPulse.com, the launch of COMP itself triggered 50 percent growth in the DeFi ecosystem in a single week
Resistance Levels: $273, $250, $219
Support Levels: $162, $130, $92
COMP/USD Daily Chart: Ranging
COMP/USD Daily Chart
COMP slumped from highs of $273 to beneath $200, as seen on Binance after its listing, but since its initial pump and dump, COMP/USD has rebounded to trade today around $183.4. Bulls don’t have levels of support, so they’ll have to target $219 beyond the daily horizontal level of resistance to retain upside momentum.
COMP is presently technically in the deceleration phase, but the RSI remains close to 40 near the oversold area and may suggest a potential bounce is imminent. After the start of the day, COMP/USD has risen from $162.87 to $193.40, rising by almost 8.0 percent. COMP is expected to increase in the long term, which could be a profitable investment, according to chart analysis and forecast.
COMP/USD 4 Hour Chart: Bearish
COMP/USD 4-Hour Chart
The coin’s historical chart is marginal as it is only two weeks after its launch, whilst the volume of trading has risen exponentially and its an indication of the upcoming bull heading to the price level of $200. With $COMP tokens being circulated more widely and other trading platforms being opened, the market may decide a fair rate for the coin.
Technically on the 4-hour timeframe, COMP/USD has reliable support at $162.87, after a higher low was formed by the token. The RSI indicator has flattened at roughly 60 which suggests more growth opportunities for the market. COMP/USD is only bullish, over $193.40 level, and limited bearish at $162.87.
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