Will Bitcoin halving affect COMP? COMP Price Analysis
Compound (COMP) is a decentralized blockchain protocol that facilitates the lending and lending of specific cryptocurrencies. Compound pools create money markets that collect various types of assets and fluctuate interest rates based on the cost and demand of the assets.
When tokens are deposited into the Compound Pool, they receive cTokens representing their stake. The cTokens can then be used to purchase the original cryptocurrency you deposited in the Pool at any time. For instance, if you deposit ETH into a pool, you will receive cETH in return.
As the cTokens grow, they can be purchased for more of the initial asset than you deposited. This is how interest is distributed.
Compound Today’s price
Compound price (COMP) currently stands at $53.94 with $29,705,402.50 in 24-hour trading volume. Compound price has increased by 1.07% in the past 24 hours and 1.21% in the last seven days. The circulating supply of Compound is 6.9 Million. The market cap of the Compound is $369,698,805.
Technical Analysis
The price is consolidating within the symmetrical triangle. Currently, the price is getting rejected by the resistance trendline of the triangle. We have to wait for a successful breakout or breakdown.
The price is currently in an uptrend and consolidates in a symmetrical triangle. We are waiting for a breakout. A bullish breakout will likely occur, and the uptrend will continue, with an upside potential of $60 or $70. A relatively strong support zone of $47-$50 is formed by the horizontal support and the 200-day MA. (Set a price alert)
The pattern is a Symmetrical triangle, which indicates uncertainty in the market. It can break up or down but is usually in line with the prevailing trend (e.g., continuation, not reversal).
The momentum is mixed, with the MACD Line below the MACD Signal Line and the MACD Histogram bar rising, indicating that momentum could increase. The nearest support zone is $47, followed by $36, and the nearest resistance zone is $60, followed by $80.
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Price History
Compound’s token COMP has a maximum limit of 10 million. 42% of these tokens will be distributed to users via the protocol, with 2,312 COMM tokens distributed daily until 2024. The remaining 24% will be distributed to Compound Labs shareholders, 22% to founders and staff, 8% to governance stakeholders, and 4% to prospective staff members. Compound’s governance token is called a “governance token” because users can vote on the protocol’s changes.
The compound’s price peaked at $337.05 in June 2020, then fluctuated from $80 to $250 for the remainder of the year. In May 2021, COMP reached a new all-time high of USD 854.48 in a crypto-wide rally before dropping quickly to a low of USD 221.85. Since then, COMP’s price has fluctuated from $200 to $500, peaking at USD 494.91 in November 2021.
Price Prediction
In 2024, Bitcoin will have a halving, and the market is likely to see a bullish trend due to user sentiment and the desire of investors to get more BTC. However, last year’s BTC halving did not bring the maximum price for COMP according to the previous one. Therefore, we can expect to see COMP trading at a price that is not lower than $243 by year-end 2024.
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Endnote
Compound is a decentralized token that facilitates crypto lending. The price of the token is currently trading at $53,94, showing a slight increase.
Technically, the price has a symmetric triangle pattern, suggesting uncertainty. A bullish breakout could result in an uptrend to $60 or even $70.
The price history shows volatility, with highs in 2020 at $337,05 and 2021 at $854,48.
Looking ahead, the price of Bitcoin is expected to halve in 2024, so the cost of COMP could stay around $243.However, the price could fluctuate depending on market dynamics.
