As mid-November 2022 unfolds, the cryptocurrency market undergoes a correction, reversing gains from the previous two weeks. This downturn has impacted even DeFi tokens like Compound (COMP), which has retreated to its pre-recovery levels observed in early November.
COMP Price Analysis
Launched in June 2020 during the DeFi protocol boom, COMP debuted at $64 and swiftly peaked at $337 within days. After a two-month correction to $125, it surged again to $260 in late August 2020, only to drop to $90 shortly after.
Key milestones:
- 2020–2021: COMP rallied alongside Bitcoin, hitting $500 by January 2021 and peaking at $855 on May 11, 2021—coinciding with a broader crypto market crash. It later stabilized at $200 after a 75% decline.
- 2021 Performance: The token fluctuated between $300–$400 until December, ending the year at $200.
- 2022 Trends: After a brief spike to $240 in January, COMP dropped to $120 by February 18, where it found strong support. A recovery to $140 in March was short-lived, with prices settling at $124 (-3.67% over 24 hours) by mid-March.
Market Dynamics
Resistance/Support Levels:
- Resistance: $200 (January 2022), $140 (March 2022)
- Support: $120 (strongest since February 2022)
- Current Status: Trading at $124, reflecting cautious investor sentiment amid market volatility.
FAQs
Q1: Why did COMP drop to $120 in 2022?
A1: Broader crypto market corrections and weakened demand for DeFi tokens contributed to COMP's decline from its January 2022 high of $240.
Q2: What’s the historical significance of COMP’s $855 peak?
A2: The May 2021 peak mirrored the crypto market’s bull run, but COMP couldn’t sustain momentum post-crash, losing 75% of its value by June.
Q3: Is $120 a reliable support level for COMP?
A3: Yes. Since February 2022, $120 has acted as a strong floor, preventing further declines despite market turbulence.
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Disclaimer: This content is for informational purposes only and does not constitute financial advice. Always conduct independent research before investing.
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