• Tue. Oct 4th, 2022

Should you buy Compound’s token after doubling its value in June?

ByNdasi Tata

Jun 30, 2022
1633344214160 0fed50d3 5007 4868 9e31 7a3ce142b0ff
1633344214160 0fed50d3 5007 4868 9e31 7a3ce142b0ff

  • Compound token doubled in value this month.

  • The token met resistance at $56.

  • COMP is currently bearish but has a reference bottom at $27.

Compound token COMP/USD is a top gainer cryptocurrency this month. It traded at a low of $27 in mid-June before climbing to a high of $56 on June 26. The gain doubled in less than two weeks. Comp is now retreating and is trading at $48. We believe COMP/USD is showing promising signs of recovery, and investors should take note. 

Compound claims to be an algorithmic and autonomous interest rate protocol for developers. The DeFi protocol also rewards users for depositing their tokens in supported liquidity pools. The network achieves this by matching borrowers and lenders while rewarding the liquidity providers. It then makes sense that Compound has a space in the decentralization of finance. 

Crypto volatilities and the nascent industry of DeFi have slowed the uptake of networks like Compound. The network’s token COMP has been subdued as it trades significantly lower from its all-time high. However, COMP bottomed at $27, and investors should be keen to catch another bottom. 

COMP is retracing after hitting a resistance

1656525486638 19bc94b9 febe 4a8b 9773 93a9374e5f35Source – TradingView

Technically, COMP’S established resistance is at $56. The price is retracing after hitting the level. The MACD confirms a developing bearish momentum. The MACD line crossed below the moving average. The price of $56 also coincided with overbought conditions as the RSI touched 78. However, we believe COMP is unlikely to fall below $27, which is the overbought level. Investors should be keen to buy lower from the current retracement above $27. Long-term COMP recovery will be experienced if it breaks above the strong resistance of $56.

Concluding thoughts

COMP has doubled in value in July. The cryptocurrency is retracing after meeting resistance at $56. We expect the current weakness to continue until the token finds support. Investors should be keen to buy lower but above $27.

The post Should you buy Compound’s token after doubling its value in June? appeared first on CoinJournal.

Ndasi Tata

Ndasi Tata is a Cameroonian-born Bitcoin entrepreneur and former state journalist. He earned an M.Sc from the University of Nicosia in Cyprus in Blockchain and Digital Currency. He uses a variety of social media channels to promote his ideas and projects , and he's a major proponent of Bitcoin in Africa.

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