Irys
Axis Robotics
Bitcoin
Moonbirds
Pudgy Penguins
Pearl
Bubblemaps
- COMP Token is presently maintaining support above the 20 EMA, violation of that level will trigger a 10% fallout
- The current price of the Compound Token is $295 established on the back of an 8.12% decline in the past 24 hours
- Meanwhile, Compound in the run to expand their network by persuading large companies to invest in Decentralised Finance (Defi)
COMP, a native token of the Defi lending platform has recently been vulnerable to the bears after rebounding from the Demand Pit. The bullish reversal from the support region of $233 enabled the token to witness a 40% upswing. However, the tables were turned soon after the COMP price exhibited exhaustion over the support cushion of $301. On the upside, what first appeared as a ‘Dead Cat Bounce’ could be a corrective wave of the W pattern formation.
Presently maintaining its bearish momentum over the support of the 20 EMA, COMP price has forfeited 8% of its gains in today’s intraday session. The failure of the token to hold the 20 EMA would further lead to another 10% downswing and re-inspection of the $266 support level. Having said that, the accountability of the above prediction would only prompt the completion of the W pattern formation.
On the flip side, the success of the COMP bulls to sustain above the 20 EMA will invalidate the bearish outlook and bring higher highs into play. On the contrary, the daily Stochastic RSI is in favor of a bearish outlook as evidenced by the impending crossover between the %K and the %D. Needless to say, the bearish crossover will be accompanied by the loss of the 20 EMA as a reliable support cushion.
For the COMP token to break even at its ATH, the price needs a boost of 210%. At the current price level, the token is closer to its May lows than its ATH, thus demonstrating that the flash crash has bestowed the bears with superiority. According to the Coinmarketcap Website, COMP token is ranked at 55th place as per Global Crypto Currency Rating and has established a Market Dominance of 0.11%.
COMP Price Chart on the 4-Hour Time Frame
A quick inspection of the COMP token on the 4-hour chart gives us a broader perspective of the price action. The breakout from the parallel channel enabled the token to visit the 0.5 FIB retracement at $326. However, the failure to breach that resistance was followed by a pullback and the support of the 20 EMA.
Both RSI and MACD were at their peak in yesterday’s time frame that suggested that the token is prone to a minor pullback. After paying a visit to the oversold territory at 76, the RSI headed to pace inside the equilibrium range. On the off chance that the RSI sustains above the range of 50, the price action of COMP will also hold the 20 EMA as support.
On the downside, the RSI entering the pre-sold region will be followed by the token violating the support of the 20 EMA and heading towards the 0.236 FIB retracement at $236. The above statement can be reinforced by the fact that the MACD has recently transpired a bearish crossover as evidenced by the accelerating histogram inside the negative province.
Compound Lab launches a new company to introduce Defi yields to Big institutional players
Coindesk has shared that Defi firm Compound Labs, who is also the creator of Compound Money Market on Ethereum has found a new company called ‘Compound Treasury’. The launch of this company could be a game-changer as it promotes and introduces Defi yields to large Fintech firms. Undoubtedly, this is one of the most significant accomplishments in institutional Defi as Compound Treasury will offer a full-fledged gateway to Defi’s underlying protocols.
Compound Treasury will enable fintech firms to convert their dollars into USDC (dollar-backed stable coin) to be deployed on COMPOUND for a guaranteed 4% interest. As per the math done by Coindesk, large fintech firms will not only be exposed to yields from USDC deposits but also earn returns from liquidity mining.
SUPPORT : $266,
RESISTANCE : $301, $326
