- Compound price remains inside an hourly uptrend despite the failed proposal.
- The plan aimed to distribute COMP to affected users in DAI liquidations.
Compound is a decentralized blockchain protocol that allows users to lend and borrow cryptocurrencies. On November 26, due to an error or a malicious attack, the price of the dollar-pegged stablecoin DAI jumped 30%, forcing the liquidation of under-collateralized positions. The most recent proposal intended to compensate COMP users after DAI liquidations, paying out a total of 6,817,632.51 DAI in COMP tokens.
Compound price stays bullish as proposal fails
The proposal received 212,952 votes in favor and 681,290 against, which means it has failed. The distribution would have represented around 0.55% of the fully diluted COMP supply. It seems that bulls have benefited greatly from the failed plan as it means less selling pressure in the short-term.
COMP/USD 1-hour chart
The digital asset is up by 5% in the past three hours and continues climbing higher. Compound price has climbed above a symmetrical triangle pattern on the 1-hour chart targeting a 30% rise to $194.
COMP IOMAP chart
The In/Out of the Money Around Price (IOMAP) chart shows significant support below $158 and a strong resistance area between $158 and $163. A breakout above this point would quickly drive Compound price towards the next notable resistance area between $172 and $177.
COMP/USD 1-hour chart
On the other hand, the TD Sequential indicator has just presented a sell signal on the 1-hour chart. Failure to hold the vital support area between $158 and $153 can push Compound price towards the 0.236 Fib retracement level at $153 and as low as the 0.5 Fib level at $148.
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.