- Compound price has jumped by over 120% from its lowest level in June.
- The volume of COMP tokens traded in exchanges has jumped.
- Whales have also continued accumulating the token.
Compound price has made a strong comeback in the past few days as decentralized finance (DeFi) tokens jump and as whales continue accumulating. COMP crypto price soared to a high of $56.15, the highest level since February 22nd. It has rocketed upwards by over 120% from the lowest level this month.
Whales are accumulating
Compound is one of the biggest players in decentralized finance. It is a leading platform with over $2.64 billion in total value locked (TVL). This makes it the eighth-biggest DeFi protocol in the world and the third in the lending industry.
$COMP is Compound’s native token, allowing people to vote for key changes and stake. It has been one of the top-performing cryptocurrencies this month as it more than doubled from its lowest level.
This performance is in line with that of other DeFi tokens like Uniswap’s UNI and Lido DAO’s LDO. A look at its on-chain metrics shows that some whales have started accumulating the token. One of the biggest COMP holders used Binance to acquire COMP tokens worth over $3.5 million. The whale then added another 120,000 COMP into his holdings.
Read more: How to invest in COMP.
Whale movements can be a good indicator of the performance of cryptocurrencies. In the past, moves by whales have explained why tokens like Avalanche and Pepe have risen or fallen.
At the same time, the volume of COMP traded in centralized exchanges was over $163 million in the past 24 hours. That was a 86% increase from the previous day and was the 23rd most active coin. Data shows that the volume was much lower than that a few weeks ago. On the same day a week ago, the volume was just $13 million. Similarly, on June 15th, the volume was $12 million.
Compound price prediction
The daily chart below shows how the volume of COMP tokens traded every day has increased in the past few days. The coin has moved above all moving averages, which is a bullish sign. Oscillators like the Relative Strength Index and the Stochastic Oscillator have jumped to the overbought level. The Average Directional Index (ADX) has risen to over 40, signaling that the strength of the trend is strong.
Therefore, there is a likelihood that the Compound price will continue soaring as buyers target the next key resistance level at $63.50, the highest level on February 29th.
