With many altcoins leaping huge gains this week, COMP has not been left behind. After a bearish decline in recent days, the token now seems to be consolidating above the $300 mark. This is a great record for the token since the May crash.
At the time of writing, COMP is trading at $323.85 on major exchanges after a 21.4% gain.
Compound Price Analysis
COMP’s price seems to be at a consolidation level. The token is now at the verge of a breakout past the $350 resistance level. If a breakout happens past this level and market support steps in, we might witness a bullish rally towards the major resistance of $550.
However, the current level is still critical for COMP despite the gains. The buying volumes are high from investors going short to tap into the weekly gains. Such volumes may create another price correction after the token hits high levels. This may lead to retracements below $300. Sharp bears and lack of market support might push COMP to even below $200.
COMP was one of the worst-hit tokens during the May market crash, with its value dropping by nearly 75% in value. Hence, the current rise in value could be an upward price correction that is great for investors who are going short. However, investors need to tread cautiously because, with rising buying volumes, the token might reach overbought zones and cause a downward price correction.
Compound Labs, the firm behind the COMP token, has launched a new branch to its company, dubbed Compound Treasury. Compound Treasury could be one of the greatest advancements in institutional DeFi. It will enable institutions such as neobanks and fintech to send dollars automatically converted into USDC stablecoin.
More advancement on the Compound ecosystem may help stabilize the COMP token value and prevent a downward price correction. With Compound being one of the largest DeFi lending platforms, its growing adoption is inevitable as people and economies become more open towards digital assets.
Where to Buy COMP
If you want to buy COMP tokens during the current bullish trend, create an exchange account on a reliable and reputable exchange. eToro is one of the leading exchanges that support COMP tokens. eToro comes in as highly recommended for beginners because of its ease of use. Moreover, eToro is among the few exchanges that offer copy trading to enable new traders to learn from expert traders.
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