- Compound price started a massive uptrend in response to an update in staking rewards.
- Compound passed Proposition 92 for a new rewards program to cut rewards by 50%.
- Analysts have a bullish outlook on Compound, predicting a continuation of the COMP uptrend.
Compound price started a rally, posting massive gains overnight. Proponents believe the announcement to cut rewards has fueled a bullish narrative for Compound price.
Compound price breaks into an uptrend
Compound price posted 14% gains overnight as investors turned bullish on the asset. Previously, the Compound ecosystem distributed rewards to users quickly and effectively. This allowed users to sell Compound tokens off instantly, and the practice of farming COMP for profit became problematic.
Though the initial rewards system kickstarted Compound and increased the token's adoption, users have expressed discontent and felt the immediate sell-off is a disservice to holders.
With this in mind, new Proposition 92 was put forward to cut rewards by 50%. Through this, the holder's share of Compound would retain its value in the long term as selling pressure on the token would reduce.
Compound farming behavior has negatively impacted the token's price previously. Therefore, analysts expect a positive impact from the update.
The community believes it is best to end the current program and start a new one for growth in Compound's value.
Analysts have evaluated the Compound price trend and predicted a continuation of the uptrend. Analysts believe Compound is ready to breakout and expect the price to double in April 2022.
$COMP Getting Ready for Breakout so keep it under the Radar..!!
— Captain Faibik (@CryptoFaibik) March 29, 2022
Expecting 2X Bullish Wave in April..#Crypto #COMP pic.twitter.com/V9TInP9q2M
Analysts have observed an inverse head-and-shoulder pattern in the Compound price chart. This pattern is associated with a reversal in an asset’s downtrend. Therefore, this pattern implies the Compound price rally could sustain, and the token could continue its steady climb.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Charles Hoskinson and XRP community in loggerheads again, debate on Ethereum’s free pass resurfaces

Charles Hoskinson, the founder of Cardano, engaged in a debate with the XRP community over the rumors of ConsenSys founder, Joseph Lubin, bribing the US financial regulator.
Bitcoin Weekly Forecast: Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin (BTC) price has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever.
Solana likely to extend gains as DeFi airdrop season could boost user base

Solana ecosystem is set to experience a surge in activity from decentralized finance (DeFi) projects that offer users airdrops in the following months, according to a report from crypto market intelligence company Messari.
LUNC ranks among trending tokens alongside Dollar pegged stablecoin USTC, eyes recovery

Terra Classic USD and Terra Luna Classic tokens are trending among market participants after overnight price gains. USTC rallied to $0.078 local top after its 2022 collapse, garnering hope among traders.
Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.