COMP, the native token of DeFi lending protocol Compound Finance, has drawn much attention following its positive price performance in the last day. According to data by CoinMarketCap, COMP has risen by 11.03% in the 24 hours, emerging as the top daily gainer of the market.
This price rise is quite significant, as COMP recorded some price drops in the last few days, which may have prompted concerns for its numerous investors after the token’s remarkable, bullish form in recent weeks.
COMP To Break Key Resistance Level?
In the third week of June, COMP embarked on a stunning bullish run which saw the DeFi token gain over 125% to trade as high as $69.15 as of July 4.
Related Reading: Compound (COMP) Token Rallies Over 100% After CEO Quits – Details
However, after attaining this price level, COMP came under significant selling pressure, losing over 9.63% of its market value in the last week before experiencing its recent price boost today.
Looking at its 4-Hour Chart, its Relative Strength Index – a tool for measuring the pace and variation of price movement – is set at 53 but is currently ascending toward the overbought zone meaning the current price uptrend may last for a while.
In tandem, the token’s Moving Average Convergence Divergence (MACD) line just crossed above the signal line, which is also interpreted as a bullish signal.
Analyzing its price movement, COMP faces major resistance at the $70 price zone as the token has failed to break past this barrier twice in the last three weeks.
However, if the market bulls are able to sustain the current buying pressure pushing past this price level, COMP is likely to resume its initial bullish trajectory.
If the token fails to break past the $70 price zone, however, it will likely fall and retest at the $50.00 price mark, which currently represents its imminent support level.
At the time of writing, Compound (COMP) is trading at $58.62, with a 0.60% decline in the last hour. The token’s daily trading volume is valued at $136 million, having gained by 216.75%.
COMP Trading At $58.56 On The 4-Hour Chart | Source: COMPUSD Chart On Tradingview.com
General Crypto Market In Red
Amidst COMP’s market gain, a majority of the crypto market is experiencing slight losses, with the total crypto market cap declining by 0.77% in the last 24 hours, according to data by CoinMarketCap.
Bitcoin (BTC), the premier cryptocurrency and market leader, is down by 0.60%, while Ethereum (ETH) has also seen its market price drop by 0.56%.
Related Reading: ADA Price Consolidates Below $0.30 – What Could Trigger A Sharp Decline?
Other notable cryptocurrencies such as Dogecoin (DOGE), Solana (SOL), and Litecoin (LTC) are also experiencing similar fates, losing to the tune of 1.86%, 3.54%, and 3.80%, respectively.