- Compound price reached a massive ATH earlier this year.
- Since hitting this height, the price was caught up in a bearish momentum that took it quite low.
- COMP seems to have managed to shake off the bears, and is now trying to recover its price.
Compound (COMP) is a new cryptocurrency, and a native coin of the DeFi project going by the same name. While COMP has only been around for a few months, it has displayed significant price movement recently, indicating that it might reach and exceed its ATH in the near future.
Compound hits an ATH days after launch
On June 17th of this year, the Compound price sat at $73.71. However, only four days later, the coin hit its all-time high with a price of $334.41.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
The growing interest in the DeFi sector brought numerous fans of the concept of decentralized finance to this project. Interestingly, the project’s trading volume was rather low at the time, only sitting at around $3.7 million when the coin hit its ATH.
However, as time passed by, COMP price kept dropping lower and lower, eventually sinking to $160 by July 4th. Despite the price drop, the coin’s trading volume kept rising until COMP hit this support. After dropping to $160, the volume drop by a significant amount, as well.
COMP recovery
As the summer kept progressing, COMP’s price battled the support level, forced down by a bearish wave. Eventually, it managed to break it and go below $160, reaching its new bottom at $130 in the early days of August.
Then, the bears let go, and COMP started growing again, which was just the signal that investors needed. The coin breached the resistance at $160 on August 11th, and on the very next day, its trading volume skyrocketed to $364 million, from its previous $63 million. This indicates that traders were simply waiting for the best moment to buy COMP.
However, the price’s progress, while sharp ended up being stopped by a resistance at $230. The resistance even rejected it, sending it back to the support at $160. However, COMP managed to bounce back yet again, and is currently moving towards the resistance at $230 yet again.
Conclusion
Compound price has been growing in recent days, once again moving towards a large resistance level. If the resistance were to fall, COMP might go up to its old ATH, or beyond. Alternatively, its price could get rejected once again and sent back to the resistance at $160.
