Compound Price Analysis: COMP bulls are looking for a comeback, metrics suggest

  • A recent report released by Santiment talks about the potential of COMP to bounce back up.
  • COMP is currently trading at $128, around 60% lower than its peak at $329.

Compound is one of the most successful DeFi projects to enter the cryptocurrency market. After its listing on exchanges in June 2020, the price of COMP quickly jumped from a low of $66 to a high of $326. The digital asset got close to $1 billion in market capitalization and was almost immediately listed on the most popular exchanges, including Binance and Coinbase. 

What does Santiment think about the future of COMP?

The rally to $326 didn’t last for too long. COMP is still trading 60% lower than its peak and was showing no signs of a comeback. However, according to a recent report by Santiment, a behavior analytics platform, several indicators are shifting in favor of the bulls. 

COMP Exchange Inflow Chart

comp price

The report states that COMP has good on-chain activity, meaning the number of daily active addresses has remained flat, and it’s not declining, which is a healthy indicator. Another notable metric in favor of the bulls is the exchange inflow of COMP tokens. On September 13, the number of tokens going to exchanges spiked to around 90,000, while the price dropped 13% on the same day.

However, the next few spikes were far smaller, which indicates that bears are exhausted and a potential bottom could be forming.

COMP/USDT daily chart

comp price

On the daily chart, bulls have established a critical support level at $128. The price of COMP has tested this level on several occasions since August, and bulls defended it every time. On August 3, the price of Compound bounced from this support level surging by more than 100% within the next week. 

If history repeats itself and we see a similar price surge, COMP could very well re-test the high of $272. However, there is a resistance level closer in the form of the 50-SMA at $174. Additionally, the MACD is on the verge of turning bullish.

COMP/USDT 4-hour chart

comp price

The TD sequential indicator has presented a buy signal in the form of a red ‘9’. A bounce from the $128 support level would validate this signal and take COMP up to at least the 50-SMA at $136. 

On the other hand, as $128 is basically the lowest level COMP has ever traded at besides the first few days of trading, a bearish breakout below it would be devastating for the price. The lowest price point touched was $110 on August 2 on Binance. This level will probably serve as the next support pillar in case of a bearish breakout.

The $100 psychological level should also be considered a support level. At that point, the RSI will very likely be in oversold territory and will also act as support. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Three reasons why the cryptocurrency market could be about to suffer one of the nastiest corrections in years

The cryptocurrency market seems to be stronger than ever and has seen a $250 billion increase in its market capitalization since the beginning of October. 

More Cryptocurrencies News

Yearn.Finance Price Forecast: YFI’s next buying opportunity may come at $18,000

YFI had an astounding 290% bull rally that started on November 5 and peaked on November 20 at $29,890. The digital asset seems to be under consolidation, and many indicators are turning bearish in the past ...

More News

XTZ attempts to breakout but technicals point to a retracement first

Tezos is up by 45% in the past week as it was one of the few cryptos left to go up. Bulls face a critical resistance level at $3, and some technical indicators suggest that investors should sell in ...

More Tezos News

Traders are buying XRP like crazy ahead of Flare Network’s airdrop

Ripple's XRP is changing hands at $0.64, having gained over 6% on a day-to-day basis and over 110% on a weekly basis. The coin hit the multi-year high at $0.7824 on November 24 but failed to hold the ground ...

More Ripple News


Bitcoin Weekly Forecast: BTC makes new yearly highs while its network activity looks worrisome

Bitcoin has lived through the best week since February 2018. The pioneer digital currency price gained over $2,000 in less than seven days. The bullish momentum allowed it to reach a new multi-year high of nearly $18,800, marking November 2020 one of the strongest bullish months ever. 

Read the weekly forecast