A week ago we wrote about the Compound project, its desire and ability to return to the top 5 on Defi pulse. As well, we analyzed the COMP token price possible movement. A lot of our ideas have worked out well, so it’s time to consider probable further scenarios.
Locked tokens capitalization renews new highs
Capitalization of locked COMP tokens continues to grow without correction. During the week, the capitalization added +19%- 20% from $1 billion to today’s $1.19 billion. It is difficult to forecast where the upper limit of such growth may be. So, it only remains to closely monitor and promptly analyze the situation at the moment and respond to it.
This increase allowed COMP not only to break into the top 5 locked tokens capitalization, according to the Defi pulse rating, but to confidently entrenched in 4th place. But, to 3rd place, where is the popular and often used in the Defi space – WBTC, it still needs to grow +50%. Though, the nearest pursuer, which is in 5th place – Aave, lags behind in the capitalization of locked tokens by -25%.
COMP token speculations, where to buy and sell?
Previously, we mentioned that the COMP price is trying to leave the falling channel in which it was traded for the last 2 months. The price was fixed outside the channel and move to the upper level, which we noted $123. But buyers’ strength was enough only to fix the high at $120.89, and the trading day closed with a pinbar. The pinbar candle, even on a serious 1D time frame, most traders consider as a reversal signal, it so happens.
After the reversal signal from the pinbar, the COMP price continued to fall for a week. The result of the fall was the achievement of a lower level $80, which we also wrote about in the previous article.
Today, the price has hung above $80 and is probably waiting for a signal from BTC, which is steadily growing. How all altcoins will behave on correction or fall of BTC is difficult to forecast. Now, capital from altcoins flows into BTC. And, will it return to altcoins and when is not known yet.
We want to believe that the COMP price fall will stop in the zone $72-80. It is in this zone that the token will start accumulating at average volumes, before further growth. The volumes splashes above the average will indicate in which direction the price is going to move in the future: up to $123 or update the bottom.