Compound is garnering a lot of attention from the crypto market lately. The cryptocurrency went on a spree as it broke several key barriers. However, the mentioned asset is among the other hundreds enjoying a significant increase in buying pressure.
As a result of the current state of the market, the global cryptocurrency market cap returned to the previous week’s high. It kicked off the week at $1.05 trillion but dropped as low as $1.04T on Monday. Current prices suggest that the sector improved. Currently at almost $1.08 trillion, the industry’s valuation is up by almost 3%.
With the notable positive changes in the value of most assets, the derivatives market came alive. At the time of writing, Almost $80 million was liquidated. More than 80% of the total REKT funds were from short positions.
Nonetheless, the top gainers are filled with assets that performed poorly during the previous week. One such is RUNE. It kicked off trading at $1.73 but enjoyed a gradual increase in buying volume. Due to this, it made an attempt at the $2 resistance but failed as it faced strong rejection $1.96. It soon retraced but is up by more than 12%. Aside Thorchain, Compound also registered significant increases.
Compound Sees Highest Surge
The altcoin kicked off the current intraday session at $41. Coin tracking platform, Coinstats offers further insight into what transpired. COMP experienced a spike in buying volume that also affected prices.
As a result, it broke through several critical resistances. One such was the $45 barrier. Since August 17, the coin has failed to gain any stability above the mark. Although there were several attempts at breaking the trend, they all failed as it lost momentum after flipping it. The most recent trial is the most successful in more than a month.
After gaining stability above the said mark, compound continued further as it made an attempt at the $50 barrier. The demand concentration was enough to flip it. However, the victory was shortlived as the altcoin faced a massive rejection at $50.2. Due to this, it is currently exchanging at $48. Nonetheless, it is up by almost 20%, making it the top gainer at this time.
The most recent surge also sparked a lot of reactions. One such are the indicators. For example, the Relative Strength Index is currently at 70 after it started the intraday session below 50. If the present price improvement continues, the asset may become overbought.
On the other hand, the Moving Average Convergence Divergence is fairly silent. Both the 12-day EMA and 26-day EMA are a bit far from each other. Due to the most recent surge, the shorter timeframe is on an uptrend.
In the Coming Days
The asset under consideration may see more downtrends in the coming. RSI reading is a clear indication of this. Due to this, the coin may test critical support within the next two days.
One such level is the $45 barrier. Based on previous price movements, the mark served as a strong resistance. However, it is not a strong support and may break with little effort from the bears. It may drop as low as $42 afterward.
