Compound price jumped by 6.4% despite a $25 million attack on its DAO governance. The dysfunctional Compound DAO was riddled with inactive members, which led to a sinister whale proposing and passing a $499,000 COMP grant for his team, the Golden Boys.
On-chain sleuth Ignas found out the problem also affected the Arbitrum DAO and noted that the issue of centralized DAOs is costly. COMP price hovered around $51.85 during U.S. business hours after the protocol reached a truce with crypto whale Humpy. COMP promises to surge even higher as bullish breakout confirmations form on its chart.
COMP Metrics: Open Interest, Volume, Supply, Funding Rate All Surging
The Compound price has performed exceptionally well for a DeFi protocol that just lost $25 million from its treasury. According to CoinGecko, the daily trading volume is up 49%, signaling investors are taking an interest in the token.
Data from Santiment also shows that the COMP whales became active after the recent spotlight on the protocol. Additionally, on-chain volume and supply circulation surged to near-all-time high levels.
Coinalyze data shows the aggregated open interest (OI) for COMP surged by 21% in the last 24 hours, signaling investors are channelling funds into the asset. COMP’s positive funding rate shows the market is bullish on the asset.
The ratio of traders Long and Short dropped to 1.36, signaling that despite the good price performance, investors are betting the price may not stay up for long. The Long/Short ratio has dropped since March 13, when it established its yearly high at 2.94.
Compound Price Analysis: COMP Breakout Eyes 72% Rally to $89
The COMP/USDT price chart shows a breakout from a falling wedge pattern, which typically signals a bullish reversal. The asset is trending below the 50-day and 200-day EMA, which provides some resistance above it. Since the breakout on July 15, COMP price has ranged between $52 and $47.
Key resistance levels for Compound price include $52 (50-day EMA), $55.95 (200-day EMA), and $89 profit target based on the breakout from the falling wedge. Conversely, if bears win the struggle, COMP may find support lower around $40.17, the most recent low.
The technical indicators suggest COMP is in a bullish trend but displays signs of weakness. The Relative Strength Index (RSI) is at 54.23, indicating moderate bullish momentum, while the Chaikin Money Flow (CMF) is at 0.14, indicating positive money flow and increasing buying pressure.
The post Compound Price Spikes 6% Amid Concerns of a Dysfunctional DAO appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed