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Compound price has seen volatility in 2022, but one level that the price consistently kept returning to — either as a support or as a resistance — was $120. Even now, at the time of writing, COMP price sits just below this level, after attempting to breach it for the past 7 days. In fact, price data suggest that COMP price has moved by 0% from where it was 7 days ago.
COMP price behavior
Compound was launched in June 2020, right at the time when DeFi started to blow up and attract users with its decentralized banking services. Compound itself emerged as a lending protocol, and it quickly rose through the ranks, dominating as one of the biggest lending protocols out there in mere weeks.
Its price mirrored this growth by skyrocketing from its starting value of $64 to $337 in only three days, from June 18th, 2020, to June 21st. Of course, such rapid growth was followed by a correction that took COMP to $120, which was the first time in its history that this level came into play.
Being its largest support level to date, $120 allowed the token to bounce back up in recovery, and then it stopped its drop again when COMP crashed in late October/early November of the same year.
As the token entered 2021, it joined the Bitcoin-led rally that took it to $500 in early February, but it got stuck there trying to breach this resistance for the next two months. It finally managed to do it in mid-April, and after that, it skyrocketed to its ATH at $911 on May 12th. Unfortunately, that’s when the crypto price crash hit the entire industry, sending coins’ and tokens’ value down by 50% in the initial crash.
COMP dropped from $911 to $400, losing over 50% in the initial drop, and then it kept sinking until it hit a support at $220 on June 21st. It soon recovered to $500, but it never again managed to breach this level and go beyond it. While the price rally that came in October and November 2021 did take Bitcoin to a new ATH, COMP did not follow. In fact, its price dropped from $500 to $300 in early September, and during the November rally, it did not even manage to reach $400 again.
Instead, it climbed to $383, and that was when the bulls got replaced by the bears, and when COMP price started its lengthy descent.
Compound in 2022
With its price crashing after hitting $383, Compound kept going down until it ended 2021 with a price of $203. Fortunately, the first five days of January 2022 saw a brief return of the bulls that allowed it to bounce back up to $240, but on January 5th, the bears came back and forced Compound down to $180.
While the resistance held for a time, and the token even tried to go back up and breach $200 several times, it eventually gave in to the bearish market and crashed to $120.
This was around January 22, and for the next week and a half, the support was held. In early February, the crypto industry saw another short period when the bears were calm, which caused COMP price to spike back up to $150. But, on February 9th, the bear market returned and caused the token to crash so strongly that it dropped to a brand new bottom at $100.
Since then, the token made several attempts to go back up and reach above $120, but the support-turned-resistance has not allowed it to this day, even though Compound showed quite a bit of effort and determination over the past 7 days.
To learn more 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.