Compound price rally comes to a halt as COMP holders sell year-old supply for profits
- Compound price over the past month and a half posted a 171% rally which came to a stop after the altcoin corrected by 8% this week.
- In the span of two weeks, over $35 million worth of COMP has been sold by long-term holders.
- Some of this was picked up by short-term holders but has led to an overall increase of 230,000 COMP on exchanges.
Compound price made its investors' considerable profits these past few weeks as the altcoin kept climbing the charts. This successful rally, however, is now coming to an end as the COMP holders have decided to finally cash in on this growth after being patient for a very long time.
Compound price rally invokes profit-taking
Compound price is currently trading above $70 after rising by more than 170% in the last month and a half, bringing the altcoin up from $26. The altcoin marked the year-to-date highs of $77, shooting up by nearly 200% but declined over the past week to note an 8% drawdown.
This decrease in price was the result of profit taking which was long overdue for some COMP investors. The recent increase brought the altcoin to a 14-month high which triggered a particular cohort of investors that had been waiting to offset their losses for the longest time.
COMP/USD 1-day chart
The long-term holders, also known to be some of the most loyal investors of any asset, are the ones that hold on to their supply for a period of more than 12 months. Their presence tends to prevent excessive price volatility and brings stability during bearish markets. However, when they sell, they tend to impact the price significantly.
This could be the case going forward, as over the last two weeks, COMP long-term holders began selling to make profits on their investment. Compound price at this time last year was $55, and the addresses that bought their supply at that price are presently enjoying 30% profits.
Since July 7, long-term holders’ supply has reduced by 500,000 COMP, which is worth over $35.5 million at the current prices. While some of this supply was picked up by short-term holders (investors holding assets for less than a month), most of it is yet to be accumulated.
Compound supply distribution
As a result, the supply on exchanges has risen by over 300,000 COMP bringing it to 1.52 million COMP. This selling brought the rally to a halt, however, since it will not bear a negative impact on the altcoin, a significant decline is unlikely.
Like this article? Help us with some feedback by answering this survey:
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
