- Compound price started a massive uptrend in response to an update in staking rewards.
- Compound passed Proposition 92 for a new rewards program to cut rewards by 50%.
- Analysts have a bullish outlook on Compound, predicting a continuation of the COMP uptrend.
Compound price started a rally, posting massive gains overnight. Proponents believe the announcement to cut rewards has fueled a bullish narrative for Compound price.
Compound price breaks into an uptrend
Compound price posted 14% gains overnight as investors turned bullish on the asset. Previously, the Compound ecosystem distributed rewards to users quickly and effectively. This allowed users to sell Compound tokens off instantly, and the practice of farming COMP for profit became problematic.
Though the initial rewards system kickstarted Compound and increased the token's adoption, users have expressed discontent and felt the immediate sell-off is a disservice to holders.
With this in mind, new Proposition 92 was put forward to cut rewards by 50%. Through this, the holder's share of Compound would retain its value in the long term as selling pressure on the token would reduce.
Compound farming behavior has negatively impacted the token's price previously. Therefore, analysts expect a positive impact from the update.
The community believes it is best to end the current program and start a new one for growth in Compound's value.
Analysts have evaluated the Compound price trend and predicted a continuation of the uptrend. Analysts believe Compound is ready to breakout and expect the price to double in April 2022.
$COMP Getting Ready for Breakout so keep it under the Radar..!!
— Captain Faibik (@CryptoFaibik) March 29, 2022
Expecting 2X Bullish Wave in April..#Crypto #COMP pic.twitter.com/V9TInP9q2M
Analysts have observed an inverse head-and-shoulder pattern in the Compound price chart. This pattern is associated with a reversal in an asset’s downtrend. Therefore, this pattern implies the Compound price rally could sustain, and the token could continue its steady climb.
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