Compound (COMP) Shows Signs of Increased Interest
Compound (COMP) is currently trading at $40, with a slight increase of 0.23% in the last 24 hours. Over the past week, COMP has gained 7% in value, indicating a growing interest among investors. Its trading volume has also seen a significant rise of 66% to $62.5 million.
As of now, Compound’s market cap is at $316 million, placing it at the 90th position on CoinMarketCap’s ranking.
Compound Price Relies on Strong Support at $36
After reaching a swing high of $86 in mid-July, the price of COMP has been on a downtrend, losing more than 53% of its value since then. The token has struggled to break free from this downtrend over the past two months.
The sell-off caused COMP to drop below major support levels, which now act as barriers on the upside. The Relative Strength Index (RSI) reached oversold levels before recovering slightly, indicating that there are still more sellers than buyers in the market.
However, there is hope for COMP as buyers enter the market and push the price towards the $45 range. This level is supported by the 200-day and 50-day Simple Moving Averages (SMAs), presenting a significant hurdle for the bulls. If they manage to overcome this obstacle, the short-term target of $50 becomes achievable, representing a 24% increase from the current price.
Strong Support Zone at $36
The price of COMP enjoys robust support around the $36 demand zone, despite facing resistance from the SMAs. In June, when COMP rose from this level, it experienced an impressive rally of 140% to $86. Despite the recent downtrend, the price has not dropped below this level.
On-chain data from IntoTheBlock shows that the support level at $36 is within a price range where a significant number of COMP tokens were previously bought by investors. Any attempts to push the price below this level would likely be met with intense buying pressure from this cohort of investors.
COMP Alternatives
While waiting for Compound’s value to grow in the near term, another token called Bitcoin BSC (BTCBSC) has been gaining popularity. BTCBSC is currently in its presale and aims to offer similar opportunities to early Bitcoin investors.
The project has already raised $3 million in just ten days and is two-thirds of the way to its soft cap of $3.96 million. It is raising about $250,000 daily on average, giving early adopters a limited window of opportunity to participate in the presale.
According to Joe Parys, a popular crypto YouTuber, BTCBSC has the potential for significant returns. To participate in the presale and purchase BTCBSC, users need to connect their wallets and use BNB, ETH, or USDT.
Hot Take: Compound’s Potential for Price Increase
Compound (COMP) has shown signs of increased interest among investors, with a rise in trading volume and slight price gains. The price sits on strong support at $36, indicating potential for an upward move towards the $45 range. However, overcoming this resistance will be crucial for further price increases.
Investors should also consider alternative tokens like Bitcoin BSC (BTCBSC), which is currently in its presale phase and has gained significant popularity. With the potential for high returns, early adopters have a limited window of opportunity to participate in the presale.
Sources: CoinMarketCap, Twitter
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