{"id":1156,"date":"2021-08-10T12:30:00","date_gmt":"2021-08-10T16:30:00","guid":{"rendered":"https:\/\/www.hodlin.com\/blog\/?p=1156"},"modified":"2021-08-10T12:44:50","modified_gmt":"2021-08-10T16:44:50","slug":"compound-price-analysis-for-august","status":"publish","type":"post","link":"https:\/\/www.hodlin.com\/blog\/compound-price-analysis-for-august","title":{"rendered":"Compound Price Analysis for August: Will COMP Clear $440?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1200\" height=\"675\" src=\"https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-analysis-for-august-1200x675.jpg\" alt=\"Compound Price Analysis For August\" class=\"wp-image-1167\" title=\"\" srcset=\"https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-analysis-for-august-1200x675.jpg 1200w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-analysis-for-august-780x439.jpg 780w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-analysis-for-august-768x432.jpg 768w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-analysis-for-august-1536x864.jpg 1536w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-analysis-for-august-2048x1152.jpg 2048w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption>Compound Price Analysis For August<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">In Breif<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>DeFi TVL is over $78 billion as of writing at the time of writing as per trackers.<\/li><li>A higher TVL means better token valuation, a reason why traders are hopeful of more price expansion.<\/li><li>Compound, of note, is reaping benefits.<\/li><li>While recent COMP gains appear labored, bulls appear to be announcing their presence\u2014and this is welcomed.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Compound Market Overview<\/h2>\n\n\n\n<p>Reading from the daily price chart, COMP is trading within a bullish breakout pattern above the middle BB.<\/p>\n\n\n\n<p>However, gains are not wide-ranging, and neither is participation off the charts.<\/p>\n\n\n\n<p>If anything, there is a real risk that COMP prices could crash if there is a minor destabilization in the market.<\/p>\n\n\n\n<p>As of August 2, <a href=\"https:\/\/www.hodlin.com\/coins\/compound-governance-token\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">COMP is stable versus the USD<\/a>\u2014dropping three percent on the last day, trending inside a $70 range with caps at $370 on the lower end and $440\u2014July 2021 highs on the other.<\/p>\n\n\n\n<p>While it is too early to make calls, the recovery, especially in ETH and BTC, could be the precursor for more gains in subsequent sessions.<\/p>\n\n\n\n<p>As such, the odds of a break above $440 in a buy trend continuation pattern of the H2 July 2021 remain highs. If buyers are a success, a high-volume close above $440 could be the foundation for $530\u2014or better in the upcoming days\u2014effectively confirming that the consolidation of the last week of July was an accumulation.<\/p>\n\n\n\n<p>Besides, it is discernible that gains from July 20 to spot levels completed the retest after COMP prices cratered from H1 July 2021 highs following the breakout of July 1.<\/p>\n\n\n\n<p>Merging them creates a confluence&#8211;cementing the bullish bias of most market participants.<\/p>\n\n\n\n<p>It is a preparation for a possible market-relieving expansion above immediate resistance levels to new H2 2021 highs, as aforementioned.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Compound Market Movers<\/h2>\n\n\n\n<p>There are several reasons why.<\/p>\n\n\n\n<p>Compound is one of the first <a href=\"https:\/\/www.hodlin.com\/blog\/what-is-defi-decentralized-finance\" data-type=\"post\" data-id=\"733\">DeFi protocols<\/a>. The release of the COMP governance token marked the beginning of the DeFi renaissance of early 2020. The Compound platform allows users to deposit supported tokens and earn interest.<\/p>\n\n\n\n<p>Notably, Compound is driven primarily by the community. As such, it claims to have no partners. Firms or individuals claiming to have struck a deal with them are probably scammers, the protocol stated.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The Compound protocol is community-run, autonomous, and anybody can integrate it. There are no &quot;partnerships&quot;, and all development \/ changes occur through <a href=\"https:\/\/t.co\/GHf3CoOHyY\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">https:\/\/t.co\/GHf3CoOHyY<\/a><br><br>Anybody claiming a partnership with Compound is likely scamming you (e.g. BitcoLoan). Stay safe.<\/p>&mdash; Compound Labs (@compoundfinance) <a href=\"https:\/\/twitter.com\/compoundfinance\/status\/1421172920450179074?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">July 30, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>In late June, Compound announced the Compound Treasury, where USD deposits yield a four percent APR with guaranteed daily liquidity. The product is accessible to businesses and institutions, less all the complexities in crypto. The objective is to bring non-crypto companies from across the globe, not just in California, into the fold.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Our vision is that Compound Treasury becomes the bridge for non-crypto financial institutions to deliver the core benefits of DeFi to the next billion users, and we are extremely excited to work with our customers to navigate this enormous opportunity.<\/p>&mdash; Compound Labs (@compoundfinance) <a href=\"https:\/\/twitter.com\/compoundfinance\/status\/1409590400981950470?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">June 28, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>In addition, they continue to add more digital assets, recently adding <a href=\"https:\/\/www.hodlin.com\/coins\/aave\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">AAVE<\/a> and <a href=\"https:\/\/www.hodlin.com\/coins\/yearn-finance\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">YFI<\/a> into the fold:<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Proposal 054 by <a href=\"https:\/\/twitter.com\/polychaincap?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">@polychaincap<\/a>, <a href=\"https:\/\/twitter.com\/getty_hill?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">@getty_hill<\/a> and <a href=\"https:\/\/twitter.com\/yesimeddy?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">@yesimeddy<\/a> adds <a href=\"https:\/\/twitter.com\/search?q=%24AAVE&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">$AAVE<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24YFI&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">$YFI<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24SUSHI&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">$SUSHI<\/a> as supported assets with the following parameters:<br><br>Collateral Factor: 0%<br>Reserve Factor: 25%<br>Borrowing Cap: 60k AAVE, 1500 YFI<br><br>Discussion: <a href=\"https:\/\/t.co\/Yr54oTyXck\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">https:\/\/t.co\/Yr54oTyXck<\/a><br>Proposal: <a href=\"https:\/\/t.co\/Ee0zCnU5yL\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">https:\/\/t.co\/Ee0zCnU5yL<\/a><\/p>&mdash; Compound Labs (@compoundfinance) <a href=\"https:\/\/twitter.com\/compoundfinance\/status\/1420799000962342914?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">July 29, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>At the same time, Compound has made it even cheaper for users in other markets to claim COMP tokens. Besides, the recently approved Proposal 050 allows for the liquidation of deprecated markets.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Proposal 050 by <a href=\"https:\/\/twitter.com\/compoundfinance?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">@compoundfinance<\/a> reduces the gas costs of claiming COMP from multiple markets, and allows deprecated markets ($SAI, <a href=\"https:\/\/twitter.com\/search?q=%24REP&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">$REP<\/a>) to be liquidated.<br><br>Voting begins in 2 days.<br><br>Discussion: <a href=\"https:\/\/t.co\/SlqaDF2fPZ\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">https:\/\/t.co\/SlqaDF2fPZ<\/a><br>Proposal: <a href=\"https:\/\/t.co\/eve9iHpT3N\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">https:\/\/t.co\/eve9iHpT3N<\/a><\/p>&mdash; Compound Labs (@compoundfinance) <a href=\"https:\/\/twitter.com\/compoundfinance\/status\/1409715319292129286?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">June 29, 2021<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Compound Price Analysis<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1200\" height=\"675\" src=\"https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-daily-chart-for-august-1200x675.png\" alt=\"Compound Price Daily Chart For August\" class=\"wp-image-1157\" title=\"\" srcset=\"https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-daily-chart-for-august-1200x675.png 1200w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-daily-chart-for-august-780x439.png 780w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-daily-chart-for-august-768x432.png 768w, https:\/\/cdn.hodlin.com\/blog\/wp-content\/uploads\/2021\/08\/compound-price-daily-chart-for-august.png 1366w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption>Compound Price Daily Chart For August &#8211; Source <a href=\"https:\/\/www.tradingview.com\/chart\/?symbol=GEMINI%3ACOMPUSD\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">TradingView.com<\/a><\/figcaption><\/figure>\n\n\n\n<p>COMP\/USDT finds itself in an exciting spot, compressed as per price action in the daily chart, dropping three percent on the last trading day.<\/p>\n\n\n\n<p>Ranging inside a tight $70 consolidation, as mentioned earlier, COMP prices would recover, reaching $530 once $440 is conclusively broken in the days ahead.<\/p>\n\n\n\n<p>On the lower end, any close below $370 with high trading volumes would invalidate the uptrend, allowing sellers of June to flow back. The short-term bear target, in that case, would be $340.<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> Opinions expressed are not investment advice. Do your research.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Breif DeFi TVL is over $78 billion as of writing at the time of writing as per trackers. A higher TVL means better token valuation, a reason why traders are hopeful of more price expansion. Compound, of note, is reaping benefits. While recent COMP gains appear labored, bulls appear&#8230; <a class=\"more-link\" href=\"https:\/\/www.hodlin.com\/blog\/compound-price-analysis-for-august\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":1167,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10],"tags":[110,109],"class_list":["post-1156","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-compound","tag-compound-price"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/posts\/1156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/comments?post=1156"}],"version-history":[{"count":4,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/posts\/1156\/revisions"}],"predecessor-version":[{"id":1170,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/posts\/1156\/revisions\/1170"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/media\/1167"}],"wp:attachment":[{"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/media?parent=1156"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/categories?post=1156"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hodlin.com\/blog\/wp-json\/wp\/v2\/tags?post=1156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}