The composite token has added 4% per day as the price defies a bear market
The protocol plays a role in the DeFi sector through crypto loans
COMP is trading at double the June lows with more upside potential
Compound COMP/USD is up more than 4% in the past 24 hours. The gains defy a largely bearish crypto sentiment. Markets are still reeling from an aggressive Fed tone amid faster rate hikes. With no specific factors affecting COMP, buyers may find it attractive at low prices.
COMP was trading at $60 at the time of writing. The price is more than double the low of $27 reached in mid-June. However, the level is significantly low compared to a high of $240 at the start of the year. The token’s all-time high remains around $915 as of May 2021. A combination of factors, including tighter economies and the Ukrainian war, caused the decline.
Consequently, investors find Compound attractive at low prices. In particular, Compound promises to revolutionize the DeFi sector with crypto lending. The nascent sector presents a huge opportunity, but it will take time to realize its full potential.
COMP maintains short-term trend and restores support level
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Source – TradingView
Technically, the Compound token is trading at $56, which is now a support zone. The recent price pump has helped the token rise above the 20-day and 50-day MA. The 20-day MA is about to close above the 50-day MA, confirming bullish momentum. The MACD indicator shows increasing bullish momentum after breaking above USD 56.
The composite token has the potential to continue to rise from its current level. The token will encounter a small resistance at $66. If momentum continues, the main target for COMP is $75.