Compound crypto (COMP) price has had a massive rally in the past few weeks. Since its bottom in June 2023, COMP price has been up 150%. This makes it one of the best-performing cryptocurrencies during this time. However, the latest analysis suggests at least a short-term pullback seems to be on the cards.
Altcoins are trading in red as BTC price is retesting the $30,000 level on Monday. Consequently, the price of the native asset of Compound Finance also slid today and was down 3.47% till press time. This translates into an 18% drop from its monthly highs.
What’s Next For COMP Crypto?
Due to the surge in Bitcoin price from its June lows, many strong altcoins like COMP crypto started to rally. While this rally has generated more than 200% returns for the bottom buyers, the high timeframe market structure remains bearish.
According to DeFi Llama, there has been a 30% increase in the Total Locked Value (TVL) on Compound Finance since the start of 2023. However, the following chart reveals that most of this TVL increase is due to a surge in Compound crypto price. Overall, the TVL is down 18% from its 2021 all-time high of $12.45B.
Compound Crypto Price Prediction July 2023
The following COMP price chart shows that the coin has been trading within the $26-$71 trading range since June 2021. The bottom of this range has acted as a resistance during this time. Similarly, the top of this range, i.e., $71, is acting as resistance. Recently, the price has retested this level and failed to break out.
On a higher timeframe, Compound crypto price prediction will remain bearish as long as the price stays below $71. Currently, the price is trading at $58.28. A break below $51 will take the price toward the midpoint of the trading range, which lies at $43. A deeper pullback will put a retest of the range lows at $26 on the cards.
In the meantime, I’ll keep sharing updated COMP crypto analysis along with my personal trades on Twitter, where you are welcome to follow me.
