Compound Token Showed Strong Bullish Bias Earlier, But Not When the Crypto Market Turned Bullish
Compound surged in early July but has been stagnant since the crypto market turned bullish
The Compound crypto token had a great run from late last year, starting from around $800 and ending up above $900 in May this year as investors turned into the cryptocurrency market. The crash in May and again in June sent COMP/USD down to 4204, but that was the end for the bearish momentum and since the last week of June Compound has been mostly bullish.
The surge came in late June and early July, with the price surging from around $200 to $530 until the end of the first week last month, as we covered in our Compound 2021 Price Forecast. Compound Labs, the parent firm of the Compound coin released the “Compound Treasury”, to get larger companies to benefit from DeFi yields, which can go up to 4%. The “Treasury” account provides a fixed yearly yield rate of 4%, which is significantly higher than what is offered by a savings account.
The release of the “Treasury” accounts helped improve the sentiment for two weeks about a month ago, as this crypto token gained more than 160% in two weeks. But, when the bullish momentum finally came for cryptocurrencies in the second half of July Compound didn’t benefit much from it.
Compound Token Live Chart
In fact, Compound declined from the top in the third week, until $312, but has picked up since then and is trading around $400. That’s still nearly twice the value from the bottom in June, which is more than larger than the bounce in most cryptocurrencies, apart from the AXS Axie Infinity token.
So, Compound is still bullish and the new “Treasury’ accounts will attract more large investors. Although, the bullish trend will be considered back on, when the price moved above the 200 SMA (purple) and particularly the 100 SMA (green) for COMP/USD on the daily chart.
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