Is Compound token now bullish after 50-MA support?
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The Compound Protocol allows borrowing and lending in crypto
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COMP has returned 12% in the last seven days
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COMP has hit resistance amid improved crypto sentiment
Compound Protocol COMP/USD is pointing north again after the latest slump. The gains in the past week are more than 12%, helping the token move above the 50-day MA. The price surge indicates COMP’s resilience in the wake of the latest declines.
The Compound Protocol is a decentralized platform that allows borrowing and lending in crypto. It is also regarded as a truly decentralized protocol, where users have a say in the platform’s governance. Conversely, the growth of the Compound Protocol has been tied to the DeFi boom. With the growth slowing down this year, the Compound token has taken a hit.
COMP price movement and prediction
COMP price movement shows that the token is yet to stage a sustainable recovery. The yearly lows remain around $27, reached in June. COMP trades at $56.62, suggesting that it has more than doubled since then. The $56 coincides with a resistance zone.
Source – TradingView
On the daily chart, COMP is moving from an oversold region. An RSI reading of 58 indicates that the cryptocurrency is yet to reach the overbought region.
For us to consider COMP bullish, the token must overcome the resistance at $56. A break above will reinforce a bullish view with the next level at or close to $70. Consequently, the 50-MA support reinforces a bullish view but doesn’t suggest that COMP will break above.
Summary
The Compound token is bullish but has met resistance at $56. The gains have been a direct result of crypto recoveries. We need to wait for the token to break past the resistance to consider a bullish view. The next level to watch after a breakout is $70.
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