COMP, the DeFi Compound Finance lending protocol token, has attracted a lot of attention following its positive price performance in the past day. according to Data by CoinMarketCapCOMP prices rose 11.03% in the 24 hours, emerging as the market’s highest daily gain.
This price rally is very significant, as COMP has recorded some price drops in the past few days, which may have spooked many investors after the token’s notable bullish form in recent weeks.
Companies to break the main resistance level?
In the third week of June, COMP embarked on a spectacular bull run that saw the DeFi token surge more than 125% to trade as high as $69.15 as of July 4th.
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However, after reaching this price level, COMP experienced significant selling pressure, losing more than 9.63% of its market capitalization in the past week before experiencing a recent price hike today.
Looking at the 4 hours chart, the RSI – a tool for measuring the pace and change of price action – is set at 53 but is currently climbing towards the overbought territory which means that the current bullish price trend could continue for a while.
Concurrently, the moving average convergence divergence (MACD) line of the symbol has just crossed above its signal line, which is also being interpreted as a bullish signal.
Analyzing the price action, COMP is facing significant resistance at the $70 price area as the token failed to cross this barrier twice in the past three weeks.
However, if the market bulls are able to sustain the current buying pressure pushing beyond this price level, COMP is likely to resume its initial upward trajectory.
If the coin fails to breach the $70 price area, it is likely to decline and retest the $50.00 price mark, which is currently an imminent support level.
At the time of writing, Compound (COMP) was trading at $58.62, with a decline of 0.60% in the past hour. The daily trading volume of the token is valued at $136 million, having increased by 216.75%.
COMP Trading At $58.56 On The 4-Hour Chart | Source: COMPUSD Chart On Tradingview.com
The general crypto market is in the red
Amid COMP’s market gains, the majority of the cryptocurrency market is suffering minor losses, with the total cryptocurrency market cap down 0.77% in the last 24 hours, according to Data by CoinMarketCap.
Bitcoin (BTC), the leading cryptocurrency and market leader, fell by 0.60%, while Ethereum (ETH) also saw its market price drop by 0.56%.
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Other notable cryptocurrencies such as Dogecoin (DOGE), Solana (SOL), and Litecoin (LTC) are also seeing similar fates, losing as much as 1.86%, 3.54%, and 3.80%, respectively.
Featured image from Economic Times, chart from Tradingview
