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The Compound (COMP) cryptocurrency has made headlines recently with a remarkable surge in its price.
In the past 24 hours alone, COMP has experienced a staggering 17% increase, making it the top-performing altcoin among the top 100 cryptocurrencies by market size. Over the past week, the token has gained over 24% in value.
Compound (COMP) breaks out of consolidation
Following the splendid market performance, the Compound native token has broken out from a 40-day consolidation period.
The breakout from this consolidation signals a shift in market sentiment and a strong intent by bulls to drive the price higher.
Compound ecosystem rewards
Analysts are attributing Compund’s success partly to its ecosystem rewards program. Notably, projects like GreenYield, a startup recognized within the Compound ecosystem, have received incentives. These incentives not only encourage development and innovation within the ecosystem but also have a positive impact on COMP’s price performance.
Congratulations to GreenYield for winning the $5,000 bounty for the best integration of Compound III at @ETHGlobal NY this past weekend!
— Compound Governance (@compgovernance) September 27, 2023
Amazing effort by the team – check out their project showcase here: https://t.co/BA58ipN2pf pic.twitter.com/zcuKzA7pu0
Moreover, the broader decentralized finance (DeFi) sector’s strength has bolstered COMP’s bullish outlook. As DeFi continues to gain traction, platforms like Compound, which facilitates lending and borrowing of cryptocurrencies, benefit from increased usage and demand for their native tokens.
Technical indicators and price targets
Technical indicators further support the bullish Compound (COMP) trend.
COMP’s price has crossed both the 50-day and 200-day Exponential Moving Averages (EMA), a strong signal of upward momentum.
The Relative Strength Index (RSI) is on the rise, currently at 68.78, and supported by the Simple Moving Average (SMA) line at 42.29. Additionally, the Moving Average Convergence Divergence (MACD) lines have made a bullish crossover, with histogram bars forming above the mean line, indicating buyer dominance in the short term.
Currently trading at approximately $48.64, COMP is inching closer to the significant psychological barrier of $50. A successful breakout above this level could propel the cryptocurrency to higher supply levels.
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