COMP seems to have reclaimed an upwards streak this week after rallying by a significant range. The DeFi token is inching closer towards reclaiming its lost numbers in May, and holders are all too glad to embrace the new gains.
In the past 24 hours, COMP’s value has increased by 22.2%. At the time of writing, COMP is trading at $380.10 on major exchanges.
COMP Price Analysis
COMP’s value is inching closer towards reclaiming higher grounds. The primary resistance for the coin is at $400, and if more gains continue exhibiting this month, we might witness COMP retesting those levels.
However, for COMP to go to higher levels, it needs higher demand from the crypto community and requires support from the broader cryptocurrency market. If it goes to such levels without help from the broader market, two things could happen. Short-term holders might sell off the token to reclaim their losses, or the coin might go to higher levels, and hence bulls will resume.
On the downside, COMP might fail to go higher and instead move to lower ground. This might cause the token to retest the $350 support levels. Going lower than this might mean that bears have officially resumed for the token, and further declines may be reported.
The current rally for COMP tokens is attributed to the company’s news about Treasury. Compound Treasury will be a new DeFi service that has been solely created for institutional DeFi investors.
With DeFi witnessing growth by the day, having such a service will place Compound at a better place amongst other competing DeFi companies such as Aave. This potential has led to an increased demand for COMP tokens. If similar projects are launched by the firm, then the bull signal will grow stronger.
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