- Compound is currently consolidating near a supply zone and may see a rebound in future
- Technical indicators of COMP are favoring a weak upside trend.It has seen a drop of 0.07% in BTC pair
Compound is a decentralized finance (DeFi) protocol which allows users to earn interest on their cryptocurrency holdings by lending them to other users. The protocol operates on the Ethereum blockchain and is governed by its community of token holders.They can vote on proposals related to the development and management of the protocol.As a governance token, COMP grants holders the right to propose and vote on changes to the protocol, such as adding new assets for lending or adjusting interest rates.COMP is also used as an incentive to encourage participation and engagement in the Compound ecosystem. Users who borrow or lend assets on the platform earn COMP tokens as a reward, with the amount of COMP distributed each day determined by the protocol’s algorithm. Compound has become one of the most popular Defi tokens.It has seen a decline in the market cap in the past few months.
Compound has a market cap of $363 Million and is ranked 112th in the cryptoverse. Volume of the asset price has seen a decline of 22% in the intraday session. Analysts are expecting a consolidated trend in COMP price.
Is A Breakout Coming For COMP Price?
COMP price is currently in a supply zone and can see a breakdown to the next support in future. The weekly technical chart of the Compound price suggests a consolidated trend in price.On the daily chart it is trading near the value of $50.12 with a small gain in the intraday session.The upside trend of Compound price can see a halt near the value of $60.Meanwhile the support for the asset price can be seen near $30.It is trading above the 50 and 100 Daily Moving Average.Meanwhile,50 DMA is currently acting as a support for the asset price.
RSI of the COMP is currently near 46 suggesting its presence in the neutral zone.There is a downside slope which can push the asset price to a new low
Conclusion
Compound price is currently observing a consolidation but may see a new high in future. COMP price may see a strong upside momentum in the future.
Technical Levels
Major Support:$30
Major Resistance:$65
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.
Source: https://www.thecoinrepublic.com/2023/03/01/compound-price-prediction-is-comp-price-ready-to-rebound-for-100/