- Compound has seen a strong growth in the past few days with the gain in Bitcoin
- Technical indicators of COMP are favoring upside momentum.It has seen a drop of 1.53% in the intraday session
Compound is a defi Platform built on Ethereum . It allows users to earn interest on their cryptocurrency holdings and to borrow assets without intermediaries. The platform operates as a money market protocol, meaning it offers interest rates that adjust in real-time based on supply and demand dynamics.Users can deposit their cryptocurrencies into a variety of “cTokens” on the platform, which are tokenized versions of their assets that represent a claim on the underlying assets. The cTokens can then be traded on other decentralized exchanges or used as collateral to take out loans. The interest rates on the platform are transparent, and all activity is recorded on the Ethereum blockchain, making it auditable and resistant to censorship or fraud.One of the key features of Compound is its algorithmic approach to interest rate determination, which eliminates the need for traditional financial intermediaries like banks.Additionally, since the platform is built on the Ethereum blockchain, users can access their funds at any time without having to go through a third party.
Compound is currently ranked 91st in the CMC and has a market cap of$411 Million. Volume to market cap ratio of COMP suggests a consolidated trend in price.
Bulls Of COMP Are Gearing Up
The weekly technical chart of the Compound price suggests a weak upside trend in price. On the daily chart it is trading near the value of $56.7 with a gain of 0.5%. The upside trend of the COMP can see a halt near $65.Meanwhile the support of the asset price can be seen near $45.It is trading above the 50 and 100 Daily Moving Average. There can be a positive crossover which can push the asset price to a new high. Various analysts are expecting a strong growth in the near future.
Conclusion
Compound is currently in an upside mode with the rise in Bitcoin. COMP is currently consolidating near $55 but can soon see an upside move in the future.
Technical Levels
Major Resistance:$65
Major Support:$45
Source: https://www.thecoinrepublic.com/2023/01/30/compound-price-prediction-is-comp-price-ready-for-100-in-2023/