Compound Price Analysis : Grayscale opened its DeFi fund for public trading by OTC market

Grayscale announced U.S based authorized investors can publicly buy and sell DEFG shares
Compound exposure is 4.09% in DeFi fund
COMP/USDT is trading at $39.31 with a nominal intraday gain of 0.18% The volume to market cap ratio at 0.0775

After the press release, The Compound prices had not reacted much but triggered some positive momentum which managed to break the previous day high and session end at $39.27 with gains of 1.18%

Grayscale first launched its DeFi fund in 2021 but restricted its trading only to authorized private investors, However on December 9, Company announced that DEGF shares are available to the public for trading in Over-The-Counter market. DEGF enables investors to purchase some of outstanding 233,930 shares and gain exposure to a diversified basket of DeFi assets in a single investment vehicle.

Will COMP gain the investors attention ?

Source : COMP/USDT 4 hour chart by Tradingview

On a higher time frame, COMP prices had seen minor rallies in the months of June and August towards $70 but got rejected twice from the higher levels which will act as a strong supply zone in coming months. As of now, COMP had lost almost 80% previous gains from the higher levels and consolidating in the range between $35 to $40

The 200 day ema(green) sloping down indicates a trend to remain in bear grip.The 50 day ema (pink) will act as pullback resistance for the bulls followed by next resistance at $50.The RSI at 50 indicates neutral zone with the equal level of buyers and sellers on the same level, whereas the volume bars keep on decreasing as compared to previous session indicates price may be less volatile in coming months.

Smaller time frame narrative

On a lower time frame, the COMP prices have been squeezed in the range between $35 to $40 and are likely to break out/breakdown in the coming few weeks. As of now bulls have succeeded to defend the $35 support and supertrend indicator also generated buy signal at $37 So, prices are likely to breakout $40 and $42 level which will help the bulls to push the price higher with momentum.

The aggressive traders can look for buying opportunities at current levels for the target of $50 and above by keeping $32 SL on a closing basis but conservative investors and traders must wait for $42 breakout for creating any buy positions in the COMP.

Summary

GrayScale mentioned the current composition of DeFi fund include some of reliable names in the crypto industry like 68.88% in Uniswap, 13% in Aave, 8.89% in Maker, 5.14% in Curve and 4.09% in Compound. So, definitely the Compound will be in the spotlight in coming months and a rise in demand by the public participation in DEFG may bring genuine buyers into the market which may lead to an increase in the prices of Compound.

Technical levels

Resistance levels : $50 and $69

Support levels : $32 – $26

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.