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Compound (COMP) is trading at $40, up 0.23% on the day, and has gained 7% over the last seven days. Its trading volume is also up 66% over the last 24 hours to $62.5 million. This shows increased interest in COMP among the investors.
Compound’s live market cap is at $316 million, placing it at position 90 on the CoinMarketCap ranking.
Although the price action points to more losses, a significant level could increase the demand needed to bolster COMP. Find out the details in the next section.
Compound Price Sits on Strong Support at $36
After setting a swing high at $86 in mid-July, COMP embarked on a downtrend that has seen it lose more than 53% of its value to the current levels. The DeFi lending token has been sealed in this downtrend over the last two months.
The sell-off saw the Compound price drop below all the major support levels, now acting as barriers on the upside. The Relative Strength Index (RSI) dropped into the oversold region, reaching as low as 22, before recovering to the current levels at 42, suggesting that there were still more sellers than buyers.
However, the RSI faced upward as buyers began returning to the market. They could push the COMP price from the current levels toward the $45 area, embraced by the 200-day and 50-day Simple Moving Averages (SMAs).
This a major hurdle for the bulls, which they must overcome before reaching the short-term target at $50, where the 100-day SMA currently sits. Such a move would represent a 24% uptick from the current price.
COMP/USD Daily Chart
Note that despite the price facing stiff resistance upward due to the SMAs, it enjoys robust support around the $36 demand zone. Remember that when the Compound price rose from this level in June, it displayed an impressive 140% rally to $86. Since then, the price has not been able to drop below this level despite the intense downtrend experienced over the last two months.
On-chain data from IntoTheBlock, a blockchain data and market sentiments analytics firm, reinforces the importance of this demand zone. Its In/Out of the Money Around Price (IOMAP) model shows that the support level at $36 is within the $36 to $38 price range, where approximately 92,150 COMP tokens were previously bought by roughly 2,700 addresses.
Any attempts to pull the price below this level would be met by intense buying from this cohort of investors who may want to increase their profits.
Compound IOMAP Chart
On the other hand, a daily candlestick below the said level would spell doom for the DeFi token, with areas around $20 coming into the picture.
COMP Alternatives
While market participants wait for the Compound to grow in value in the near term, a new token, Bitcoin BSC (BSC) has been witnessing significant growth in popularity recently.
Bitcoin BSC (BTCBSC) is a BEP-20 token currently in its presale. The token intends to offer the opportunity the pioneer cryptocurrency Bitcoin (BTC) gave to early investors in 2011 when its value was only $1.
The project is currently in presale with one BTCBSC token for $0.99 and has already raised $3 million in just ten days. It is now two-thirds of the way to its soft cap of $3.96 million raised, and once it hits this figure, the presale will be officially over.
https://twitter.com/Bitcoinbsctoken/status/1704044911664746976?s=20
On average, it is raising about $250,000 daily, meaning early adopters have a short window of opportunity before the presale ends.
One of the most followed crypto YouTubers, Joe Parys, reviewed Bitcoin BSC for his over 380,000 subscribers and believes BTCBSC has the potential to make 100X returns.
To join the presale and buy BTCBSC, users must connect their wallet and use either BNB, ETH, or USDT.
Visit the Bitcoin BSC website here for more information on how to participate in the presale.
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