Compound (COMP) rose 11% amid a general bearish market

COMP, the native token of DeFi lending protocol Compound Finance, has attracted a lot of attention after its positive price performance in the last day. According to Data by CoinMarketCapCOMP has gained 11.03% in 24 hours, emerging as the top daily gainer of the market.

This price increase is significant, as COMP has seen some price declines over the past few days, which has raised concerns for many of its investors following the token’s notable, bullish form in recent weeks.

Comp to break the main resistance level?

In the third week of June, COMP embarked on a surprising bull run, with the DeFi token rising by over 125% to trade at a high of $69.15 by July 4.

Related Reading: Compound (COMP) Token Rallies Over 100% After CEO Resigns – Details

However, after achieving this price level, COMP came under significant selling pressure, losing over 9.63% of its market capitalization over the past week before experiencing a recent price increase today.

Looking at its 4-hour chart, its Relative Strength Index – a tool for measuring the speed and variance of price movement – ​​is set at 53, but is currently trending towards the overbought zone, which means that the current price The increase may continue for some time.

In tandem, the moving average convergence divergence (MACD) line of the coin has crossed just above the signal line, which is also interpreted as a bullish signal.

Analyzing its price action, COMP faces major resistance at the $70 price area as the coin has failed to break above this hurdle twice in the last three weeks.

However, if the market bulls are able to sustain the current buying pressure by moving above this price level, COMP is likely to resume its initial bullish path.

However, if the coin fails to break the $70 price area, it will likely decline and retest the $50.00 price mark, which currently represents its immediate support level.

At the time of writing, Compound (COMP) is trading at $58.62, down 0.60% in the last hour. The daily trading volume of the token is $136 million, an increase of 216.75%.

COMP Trading At $58.56 On The 4-Hour Chart | Source: COMPUSD Chart On Tradingview.com

General crypto market in the red

Amid comp’s market gains, most of the crypto market is facing minor losses, with the total crypto market cap declining by 0.77% in the last 24 hours. Data by CoinMarketCap.

Major cryptocurrency and market leader Bitcoin (BTC) declined by 0.60%, while Ethereum (ETH) also saw a decline of 0.56% in its market cap.

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Other notable cryptocurrencies such as Dogecoin (DOGE), Solana (SOL), and Litecoin (LTC) are also experiencing a similar fate, with declines of 1.86%, 3.54%, and 3.80%, respectively.

Featured Image from Economic Times, Chart from Tradingview