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Compound Tokens Stable After Bear Market
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Prolonged crypto winter and liquidity issues facing crypto firms remain a threat
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If Buying Power Remains Weak, COMP Token Could Accelerate Weakness
of compound Token (COMP/USD) appeared poised for a sustained recovery in June. After recovering from its June low of $26, the token remained bullish, reaching $70 in August. Since then, the weakness has driven the token down to $37. However, for three weeks the cryptocurrency has been trading at the same level. Investigate whether it is worth calling a buy trade in the important zone. But first, why couldn’t COMP replicate its gains?
Compound is a decentralized protocol that allows the lending and borrowing of cryptocurrencies. In other words, Compound removes the role of middlemen in traditional finance. Enabling financial services with smart contracts and a decentralized way. Coupled with the backing of the Ethereum blockchain, Compound has grown into a significant DeFi project.
The liquidity crisis affecting crypto companies is slowing the growth of DeFi and the sector’s leading blockchain. The latest company to fall victim in this space is BlockFi. The once-popular cryptocurrency lender filed for bankruptcy on Monday. BlockFi joins the list of Voyager, Celsius, Three Arrows Capital and FTX facing bankruptcy.
Latest development may not be good cryptocurrency news For protocols such as Compound. Its native token, COMP, has been merged ahead of its next move.
COMP Fights $43 Resistance Amid Price Consolidation
Technically, COMP is consolidated in a bear market. The cryptocurrency has lost the $43 level and is currently in a resistance zone.
Moving averages are bearish for cryptocurrencies and offer resistance above.
What’s next for COMP?
A consolidation at $35-37 suggests that the bears are exhausted, but it does not indicate buyer activity. The cryptocurrency has no room to move higher as the resistance and moving averages are above the stumbling block.
for COMP Price To move higher, the cryptocurrency needs to recover above $43. Otherwise, the June low of $26 is in sight.
Where to buy COMP
eToro
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bit stamp
Bitstamp is a leading cryptocurrency exchange offering fiat or cryptocurrency trading in general. Bitstamp is a fully regulated company that offers its users an intuitive interface, high security of their digital assets, excellent customer support and multiple withdrawal methods.
Buy COMP with Bitstamp now