The price of Compound (COMP) has unexpectedly surged by nearly 50% in the past three trading days, leaving many perplexed. On-chain data suggests that there may be further gains ahead, leading some to wonder if the bulls can push for the $50 target. Compound is a decentralized finance (DeFi) protocol that allows crypto investors to lend or borrow cryptocurrencies based on real-time supply and demand. Since the US Federal Reserve announced a rate pause two weeks ago, investors have been allocating more funds towards yield-bearing DeFi protocols like Compound to maximize capital efficiency. This week, COMP has greatly benefited from this trend. The increase in COMP network growth and the surge in whale transactions involving COMP are driving factors behind the ongoing price rally. If the network growth continues, it is likely that COMP will deliver more price gains in the coming weeks. Furthermore, the bullish sentiment among institutional holders could inspire retail investors to take long positions as well. The bulls may build enough momentum to rally toward $50 if they can surpass the next significant resistance at $45. However, if the price slips below $38, there is a possibility of a bearish overturn.
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