Our Compound crypto price prediction suggests that the downtrend might be over. Comp price appears to have bottomed out in March by hitting the lows of $98. In February 2022, the price briefly wicked to $93 but bounced immediately. Nevertheless, there are certain conditions that Comp crypto needs to fulfil before aiming for a major leg up. The price soared to $174 in the 1st week of April 2022; however, it tanked again along with Bitcoin.
Comp token is the native cryptocurrency of Compound Finance. It is one of the most used DeFi protocols on Ethereum. The protocol allows anyone to lend and borrow cryptocurrencies while allowing them to earn Comp coins. Users can also earn interest when they lend cryptocurrencies. As per the latest Compound crypto news, the protocol boasts of a TVL of a whopping $6.34 billion. This makes it the 8th biggest dapp on the Ethereum blockchain. Therefore, any Compound crypto price prediction massively depends on the adoption and TVL stats.
In November 2021, the platform TVL peaked at $12.17 billion. However, since the start of 2022, the TVL has constantly been decreasing due to the ongoing correction in cryptocurrencies. Comp gives its holders the governance rights of the protocol. Users can shape the future of the platform by using their voting rights.
Technical analysis of Comp coin price chart shows that the price faced rejection from $174. When writing Compound, the coin is trading at $142.5 and 84% below its May 2021 ATH of $910.5. The price is forming a wedge, and it may trade sideways for another few days before a breakout. Comp token must avoid any lower low than $98, or the bears might get full control.
A breakout of the wedge pattern could be in either direction. Nevertheless, there has been a significant increase in trading volume in the last couple of days. So any breakout in the upwards direction could make $212 a valid Compound crypto price prediction. This level matches with the 0.382 Fib retracement region. This level comes into play by connecting November 2021 highs of $400 to the February 2022 low of $93.
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