Lorenzo Stroe
Independent Analyst
- Compound price faces a critical barrier at $101, but on-chain metrics suggest it can experience a rally.
- The number of new users joining the Compound network has skyrocketed by 350%.
According to recent statistics provided by Dune Analytics, the total number of Compound users has skyrocketed by 350% in the past month, reaching a total of 175,000 users. It seems that the most significant spike happened on October 16. Compound price could be on the verge of a breakout thanks to the recent interest shown by new users.
Compound New Users chart
The number of users joining the Compound network has been slowly increasing since July 2019 and had a notable spike in July 2020 as the digital asset hit the market. The most recent colossal rise was unexpected, but a strong bullish indicator that new users are really interested in the digital asset despite its decline in value.
Compound faces one last barrier before a potential run to $120
From a technical view, Compound price formed an equilibrium pattern with a lower high at $101 and a higher low at $96.62 on the 4-hour chart. It seems that COMP broke out of this pattern in the past 24 hours, reaching $102.96 but getting rejected from the 200-SMA.
COMP/USD 4-hour chart
The 200-SMA at $102 is now the most critical resistance level in the short-term. A breakout above this point can drive Compound price towards the high of $111.8 and potentially towards $120.
COMP/USD 3-day chart
Additionally, the TD Sequential indicator has presented a buy signal on the 3-day chart as the MACD is on the verge of a bullish cross for the first time ever. The price target on the 3-day chart seems to be the same at $120.
COMP IOMAP chart
However, the In/Out of the Money Around Price (IOMAP) chart shows a stiff resistance barrier between $102 and $105, where 6,000 addresses purchased close to 244,000 COMP tokens. The $102 level coincides with the 200-SMA on the 4-hour chart. Rejection from this resistance point can push Compound price towards $93.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.