Compound (COMP) price has advanced from $400.80 above $600 since the beginning of April, and the current price stands around $578. This cryptocurrency continues to trade in a buy zone, but if the price falls below $500, it would be a firm “sell” signal, and the next target could be around $400.
Fundamental analysis: Compound has embraced a multi-chain future with ‘Gateway’ Testnet
Compound is a decentralized, blockchain-based protocol that allows its users to lend and borrow cryptocurrencies. Compound raised $25 million in 2019 to expand crypto lending, and the main characteristic of this project includes the benefits of blockchain in a rapidly expanding DeFi ecosystem.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
There are lots of cryptocurrencies that can be lend or borrow on this protocol, and according to its official website, Compund was built for developers to unlock a universe of open financial applications.
The native utility token of this protocol is COMP, and anyone who owns at least 1% of the total supply can vote on proposals. COMP token is distributed to all lenders and borrowers on this protocol, and its liquidity has risen dramatically in a very short period.
Compound Finance founder Robert Leshner said that the legacy financial system is slow, inefficient, and constrained by intermediaries. A team behind this project has a mission to change that, and in March, Compound has embraced a multi-chain future with ‘Gateway’ Testnet.
“Gateway is really designed for a multi-chain future where assets live on multiple blockchains and where decentralized finance applications and logic run on multiple blockchains as well. Gateway will be able to port assets from one blockchain to another using specific bridges called “starports, and it will be governed by the same COMP token,” said Robert Leshner.
Through Gateway, Compound Finance could become the keystone to an envisioned “multi-chain future,” still, investors in COMP should have in mind that this is a still very risky cryptocurrency.
visit & create account
Technical analysis: $600 represents the first resistance level
The essential resistance levels are $600, $650, and $700; $500 and $400 represent strong support levels. If the price jumps again above the $600 resistance level, it would be a signal to trade Compound (COMP), and the next price target could be around $6500.
On the other side, if the price falls below the $500 support level, it would be a firm “sell” signal, and the next target could be around $400.
Compound (COMP) could advance even more in the ongoing bull market, and if the price jumps once again above $600, the next price target could be around $650 or even $700. Through Gateway, Compound Finance could become the keystone to an envisioned “multi-chain future,” still, investors in COMP should have in mind that this is a still very risky cryptocurrency.
- China reluctant to clear $6 billion loan for CPEC project – Times of India
- Mother’s Day 2021: Bhagyashree opens up on the PRESSURE a woman faces during her first pregnancy [EXCLUSIVE VIDEO] | Bollywood Life
- Mother’s Day 2021: Wishes, messages to make your mom feel special
- AVL vs MUN Dream11 Team Prediction: Fantasy Tips & Predicted XIs For Today’s Premier League Match