Compound Price Prediction: COMP Could Explode After 7% Gains

After dropping to $40 on August 18, COMP couldn’t sustain several rally attempts. According to CoinMarketCap’s data, the asset has lost 29% in the last month, with a 3% seven-day price decline.

COMP surged 13% yesterday, September 13, increasing from $37.16 recorded on September 12 to a high of $41.89. However, the bears have displaced the bulls, forcing the token to recede from the $42 price level. 

As of 5:22 a.m. EST on September 14, 2023, COMP is trading at $38.80, down by 6%. In addition, COMP’s trading volume is down 35%, indicating a drop in trading activities. The $42 price level significantly resists COMP’s journey to new highs. 

Given its current price, COMP could break the prevailing resistance and record a new peak if the bulls increase momentum to force a 7% surge for the token. But how soon can this happen? The following analysis could provide hints.

Critical Moving Averages Hover Above COMP’s Price – Rally or Dip, which is Near?

The above chart shows COMP is trading below the critical moving averages (50-day and 200-day SMA), demonstrating the prevailing bearish market trend. 

Also, the Relative Strength Index (RSI) is dwindling at 39, suggesting that COMP is under sell pressure. 

However, the Moving Average Convergence Divergence (MACD) is slightly above the signal line. It has green bold histogram bars, showing that buyers are returning and may facilitate a bullish turn for the token before the day ends. Should the buyers increase momentum, COMP could surpass the critical MAs at $45 and $48, targeting the $60 price level.

Bearish COMP Finds Support at $36.79 – Appearance of Bargain Investors Could Trigger an Uptick

Compound (COMP) is trading above the support level at $36.79. It faces stiff resistance at $42, with the bears intent on forcing a decline to the $36.79 support. 

However, a drop below $36.79 could attract more buyers seeking to enter long COMP positions at low prices. This move could exert upward pressure on COMP price, facilitating a break above the $42 price mark in the coming days.

Compound’s Reaction to the US Consumer Price Index Inflation

The latest US inflation data had a modest impact on cryptocurrency prices. Data from the Bureau of Labor Statistics revealed that the consumer price index increased from 0.2% in July to 0.6% in August, whereas core inflation reached 0.3%. 

On a year-over-year basis, inflation surged by 3.7%, even though the core Consumer Price Index (CPI) dropped to 4.3%.

The primary driver behind this inflation was the rising gasoline prices. AAA National Gas Data reveals that the average gasoline price has spiked above $3.85. This upward trend is expected to continue as Brent oil comfortably exceeds $92, with WTI surpassing $89.

As a result, analysts expect the Federal Reserve to announce another 0.25% rate increase in its meeting scheduled in September. 

Following the increased inflation, several altcoins have retraced in the short term, including Compound (COMP), a leading DeFi player focused on investing and lending. 

Compound users deposit their tokens expecting to earn returns on their investments. However, its interest rate is currently not competitive. For instance, the annual percentage yield (APY) for USDC on Compound is at 3.62%, while money market funds in the United States provide more than 5% returns. 

So, if the Federal Reserve keeps tightening its measures, many investors may migrate to money market funds and CDs (certificates of deposit).

This shift in preference clarifies the factor behind the reduced COMP’s total value locked (TVL) and potentially impacts its price behavior in the short term. However, investors seeking to diversify their crypto investment can consider promising stake-to-earn projects, like Bitcoin BSC, for alluring APY returns.

Best Green BEP-20 Project with Unique Passive Income Streams – Bitcoin BSC

Bitcoin BSC ($BTCBSC) is one of the latest projects in the crypto sphere, garnering significant attention within a few days of launch. 

As a stake-to-earn project, BTCBSC uses a proof-of-stake model to reward investors for staking their BTCBSC tokens within a given interval. The rewards are locked for about seven days before release.

So far, the project boasts over 860,000 BTCBSC tokens staked in the smart contract with an estimated yield (APY) of 307%. This increasing figure shows the optimistic investors surrounding the Bitcoin BSC project.

$BTCBSC Trails Above $1.7 Million, Pushing Toward $3.96 Million Target

BTCBSC is running two presale stages and will sell at $0.99.

Since the first presale stage, the token has raised over $1.7 million and is soaring toward the $3.96 million presale target. After the presales, Bitcoin BSC will be listed on a decentralized exchange. 

Given its unstoppable upward trajectory, interested investors and traders may consider buying BTCBSC now using their BNB, USDT, or ETH on the presale official website.

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