Key Takeaways
COMP, the governance token of decentralized finance (DeFi) lending protocol Compound Finance, has risen by 50% in the last 24 hours.
This Compound Finance price increase comes after the South Korean exchange Upbit listed the cryptocurrency.
This action attracted fresh liquidity and investor interest, driving the token higher. The rally also marks one of COMP’s biggest moves in recent months, but key resistance levels could determine whether the uptrend continues.
Here is an in-depth insight into COMP’s price potential going forward.
Compound Token Breaks Bearish Structure
The compound price was $38.83 during the intraday trading session. However, the announcement of its listing on Upbit triggered a sharp price surge.
Upbit confirmed it would list COMP exclusively against the Korean Won (KRW) pair. As of this writing, COMP is trading around $52.79, making it the best-performing cryptocurrency in the top 300 over the past 24 hours.
From a technical standpoint, CCN observed that the development triggered a bullish engulfing candle, pushing COMP out of a bearish structure characterized by lower highs and lower lows.
Amid this breakout, the Relative Strength Index (RSI) reading also climbed to 63.43. The rise in the RSI reading indicates rising bullish momentum.
If sustained, the Compound price might sustain the upswing.
Trading Volume Rises 10X
Following the development, on-chain data from Santiment showed that COMP’s trading volume surged. Earlier today, the volume was about $25 million.
However, after the exchange listing announcement, the altcoin’s trading volume climbed nearly tenfold and is now above $200 million. Rising volume typically correlates with increasing interest in a cryptocurrency.
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From a price perspective, when the volume rises alongside the price, it indicates market strength and is generally considered bullish. On the other hand, if the volume falls in this situation, it signifies weakness.
Therefore, if the volume increases, the Compound token price might continue to climb.
COMP Price Analysis: Higher Highs Possible
Zooming into the daily chart again, CCN observed that the Bull Bear Power (BBP) has been negative since March 28. Today, the BBP, which measures the strength of bulls (buyers) compared to bears (sellers), has risen to the positive region.
This change in trend indicates that buyers are in control. If sustained, this could drive Compound’s price higher. The Money Flow Index (MFI) reading has also climbed, validating the rise in buying pressure.
Should this trend continue, the COMP’s price might rise to the top of the wick at $67.42. If buying pressure intensifies, the token’s value could rise to the 0.618 Fibonacci level at $76.78.
On the flip side, if the volume around COMP plummets, this bullish outlook might not pass.
Instead, the cryptocurrency’s value might slide below the $59.82 resistance and could slide below the $40 mark.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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