Bitcoin and Ethereum are falling again, but the Compound price is rising higher, gained 15% in the past 24 hours as per Coin Market Cap. This happened after the Altcoin was dragged into a bear market that lasted for weeks after the initial bull run in June. Many assumed that the ongoing bull market was due to the launch of Compound, which has spurred interest in DeFi, then Ethereum, then Bitcoin.
With the bulls apparently back in control of Compound price, what happens next for it?
The Compound is rising higher after falling lower after an initial spike in June. As mentioned above, COMP has increased by 15% over the last 24 hours.
Analysts remain optimistic about COMP despite the recent breakthrough. Trader Nebraskaaskangooner shared the chart below on August 7, showing Compound’s on-balance volume indicator, which attempts to relate price action to market volumes, is undergoing a bullish reversal textbook pattern.
He stated:
“Daily OBV reversal pattern. I don’t plan on selling until $200+ Risky play but the accumulation sub $140 could pay off big time.”
Daily OBV reversal pattern.
I don’t plan on selling until $200+
Risky play but the accumulation sub $140 could pay off big time. pic.twitter.com/TuRWuOYKST
— NebraskanGooner? (@nebraskangooner) August 7, 2020
Other analysts are also optimistic about the prospects of Ethereum-based altcoins.
Sean Nance, a trader, notes that:
“COMP looks structurally similar to Bitcoin’s macro price action; the comparison suggests COMP is poised to double in the week ahead.”
Even though Compound may be rallying, some people think the real property isn’t that much worth it.
Trader Theta Seek noted that considering the fundamentals of Compound, and he would be inclined to suggest the asset is intrinsically worth around $ 50 as opposed to $ 150.
1/ I’m short on $COMP, the fundamentals of the ‘governance’, given the public information, don’t make too much sense today.
Won’t be surprised to see it fall below $100 unless a revenue model is proposed soon. – Read full thread..
— Theta Seek (@thetaseek) July 2, 2020
What Compound may be benefiting from, though, are expectations of another period of growth for Ethereum DeFi. Commentators say the next phase of growth may be triggered by the launch of Curve’s CRV token, which is set to launch in the next week or two.
Read more:
- VeChain Announced A Blockchain-Based Food Safety Solution ToolChain
- Messari: As Ethereum Faces Challenges Scaling, There Has Been A Better Time For A Parallel DeFi Ecosystem To Break Out