The Compound price shot up on Tuesday as other cryptocurrencies recoiled. The COMP token jumped after Robinhood decided to list it on its platform. It rose to a high of $134.5, which was the highest point since April 11th. Still, the coin has fallen out of favour among investors. It has fallen by 86% from its all-time high and brought its total market cap to just $873 billion.
COMP Robinhood integration
The DeFi industry has been in spectacular growth in the past few years. It has grown from obscurity to having a total value locked (TVL) of over $200 billion. Many analysts believe that the sector will have an influential role in the financial industry in the future as more people know about it. Today, one can do virtually all financial transactions in DeFi. They can stake, send money, earn interest, and even save on it.
Compound is one of the biggest players in the DeFi industry. The platform has over $9.8 billion worth of assets that are currently earning interest in its ecosystem. People have borrowed over $3 billion at the time of writing. It has also been integrated into leading platforms like Coinbase Custody, Fireblocks, BitGo, Anchorage, Crypto.com, Binance, and Lumina.
While DeFi has done well, DeFi tokens have lagged the market. Most of them, including Uniswap, AAVE, Compound, Anchor Protocol, and Lido, have fallen out of favour among investors. They have all crashed by more than 50% from their highs and moved down the crypto ladder. Compound jumped sharply after Robinhood listed the token. Historically, those jumps are not usually sustainable.
Compound price prediction
The COMP price has been spectacular downward in the past few months. As a result, it has found a strong support at $99.40, the lowest level this year. It has struggled to move below this support several times this year. The coin is oscillating near the 25-day and 50-day moving averages, while the Average True Range (ATR) has been in a downward trend.
Therefore, Compound price will likely remain in this range and then retest the support at $99 in the near term. A move above the resistance at $135 will invalidate this view.