Amongst the top rallying coins in DeFi market was Compound, up by 28.74% in the last 24 hours
Among the top gainers in the DeFi and spot markets today is Compound (COMP), with a gain of over 28% in the last 24 hours.
COMP/USD 4-hour chart | Source: TradingView
Compound (COMP) made history
This is COMP’s highest single-day growth since June 2021. This has proven the altcoin has given investors a lot of headaches since COMP turned a profit for the first time in May. 12 the year 2021.
The rally started on March 14, pushing COMP up 54%, saving about 17% of investors from losses in May 2021 after COMP hit an ATH of $926. While COMP whales have always been active, recording spikes in volume every day, the price increase over the past 24 hours has also increased investor participation.
One-day trades circulated more than $44 million in COMP between investors, of which $38 million came from whales.
Compound network wide supply in profit | Source: Santiment
This will be significantly helpful in keeping the rally active as COMP is on the verge of a price of $161. In the zone of $161 to $165, more than 3,85 thousand investors bought 7,380 COMP, which can be converted to a breakeven point when COMP hits the price.
However, investors intrigued by this rally must know that the market is overheating at the moment. The Relative Strength Index is in the Overbought (OB) zone for the first time in almost 11 months, suggesting a trend reversal soon. The market will need to cool down first to mark a sustained rally.
But at the same time, the possibility that the RSI could be overactive into the overbought zone and the COMP could continue to rise for a while before profit-taking begins to appear. This is because COMP’s uptrend gained some strength as ADX broke through 25.0 today.
Compound price action | Source: TradingView
By verifying the reversal mentioned above possibility, COMP could soon see some price correction in the near term.
- Acala And Karura Have Joined the Wormhole Ecosystem Of L1s
- Whale Activity Has Remained Suppressed Despite Price Surging, and This Trend Is Positive For Cardano