Compound—a governance empowered platform that will extend to a mass upgrade of a protocol by the ecosystem built. Moreover, it was just in the ongoing year when COMP—DeFi based token hit an All-Time High and is, therefore, one of the most lucrative platforms amongst the top 50 blockchains of the global crypto market.
With the recent spike in the price of the COMP token and the ATH around $275 just at the onset of the ongoing trading month. However, with a massive intraday sell-off, the token waived off the gains and plummeted to test supports below $145 at $142 in the previous week. However, with gain in traction, the Compound price has reclaimed its position above $165 at $166 and has strengthened by over 15% in less than seven days.
Compound Price Analysis
COMP token, at the press time, was seen trading at $166 with a slight intraday bearishness but a confirmed weekly bullish crossover. However, the token is yet to retain support from the 50-day and 200-day daily MA until a quick retrieval above $170 happens.
However, the current candlestick formation and the momentum appears bearish due to lack of steady intraday momentum. In this regard, the trend of the token is close to breaching the lower Bollinger Band on the 8-hourly chart against the greenback.
The Bollinger Bands are seen narrowing down after a widened volatile breakout in the previous week. The token is yet to experience a gush of traction as the market momentum remains sluggish, and the largest cryptocurrency by market cap, Bitcoin tests, supports around $10.2k.
The MACD chart draws a slight bullish divergence after the weekly positive performance; however, the negative intraday bias prevails. The RSI of Compound token is till inclined towards the major support at 41.21.