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As the middle of February 2022 arrives, the crypto industry is seeing a correction that is negating the last two weeks of growth. Unfortunately, the rally that started in late January for some coins and tokens, and in early February for others, seems to have come to an end, and the bears are once again affecting the entire market equally.
Even DeFi tokens, which are still attracting new users on a daily basis with the promise of simple decentralized banking and the potential to earn passively were not spared. One good example of this is Compound (COMP), one of the biggest decentralized lending protocols, which has just seen a drop that took it back down to the same levels that it saw before the early February recovery.
Compound price performance
Compound launched in mid-June 2020, around the time when DeFi protocols blew up, and the entire sector became a massive hit throughout the world. Starting with the price of $64, COMP quickly saw a price surge that took it nearly to $350 in mere days after launch. However, after reaching the peak at $337, the coin saw a correction that lasted for about two months, eventually bringing it back to $125 in early August of the same year.
The coin saw another surge in late August/early September, reaching $260, only to once again crash, this time to $90, in early November. This is when Bitcoin started skyrocketing and COMP was among the first altcoins to join this surge. While most others joined only in early 2021, COMP started surging in November 2020, and the surge did not stop until the coin reached the resistance at $500 in early February 2021.
After struggling with this resistance level for several months, being rejected and recovering back to the resistance, the coin finally broke it in late April, pushing further and further up until it finally hit its all-time high at $855 on May 11th. Most people in the crypto industry remember this date well, as it is the day when the prices started crashing and most coins lost 50% of their value in the initial crash alone. Compound lost over 75% by crashing to a support just above $200. It reached this level in late June.
However, while most cryptos waited for July 20th to start a new growth, COMP price skyrocketed immediately, once again returning to the resistance at $500. Compound then spent the rest of the summer trying to breach the resistance, although unsuccessfully.
The coin finally lost its strength in September 2021, when it crashed to a support at $300. This level managed to hold until November, when COMP saw one final surge that took it near the new resistance at $400, only to start dropping once again, this time losing 50% of its price and finding a strong support at $200.
COMP in 2022
This is where it ended last year, entering 2022 with a price of $200. But, as soon as the new year started, COMP saw a surge to $240 in the first 5 days of January. This correlates with the rest of the crypto sector which grew during this period, only for the growth to be abruptly cut short after that. COMP crashed to $180, spending the next two weeks fluctuating between this support and $200, which was now a new resistance.
The support at $180 was finally broken around January 18th, and COMP crashed to its strongest support at $120. This level kept it from going down ever since.
As February 2022 started, the coin started to recover, managing to reach the resistance at $140 around February 5th, and while it briefly managed to go beyond this level, these last few days have caused it to drop back to $120 yet again. At the time of writing, February 14th, Compound price sits at $124, which is still 3.67% below where it was 24 hours ago.
To learn more about this token visit our Investing in Compound guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.