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Compound (COMP) Seemingly Found its Bottom at $120

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The first month of 2022 is nearly over, and so far, this year has not been particularly crypto-friendly. The prices, which were exploding throughout 2021, have started crashing in November, and other than a small break in December 2021, they simply did not stop.

Most coins have seemingly found their bottoms by now, or at least a support strong enough to keep them from dropping further down. This also seems to be the case with Compound (COMP), which recently bottomed out at $120.

COMP price in 2021

Compound’s price of $120 is the lowest that the token has been in over a year. Last January, it started the year with a price of $145, and while it did briefly drop to $136 on January 2nd, the token started surging immediately after that. By February 5th, it hit a wall after reaching $535, which forced it to correct to $455 and then rise to the same resistance again.

Once again rejected, COMP price dropped to $380 by February 23rd, only to rise to $500 again in the first few days of March. This resistance held the token from advancing, only for it to drop back to $345 by March 24th.

COMP price in 2021

However, after reaching this level, COMP skyrocketed, and it kept growing for the next month and a half, eventually reaching its ATH at $854 on May 11th. Unfortunately, this was also the day when the crypto market crashed, and forced most coins to lose 50% of their value in the initial drop alone. This happened to COMP too, and the token crashed to $342 by May 23rd.

However, with each new week, the token’s price continued to drop until it finally reached a support at $220. This level was reached around June 21st, after which COMP price surged back to $500. One interesting thing about this is that it reached $500 on July 5th, while nearly all other coins waited until July 20th for the bull market to return and replace the bearish influence.

However, while Compound may have shown initiative, it was not enough to allow it to breach the resistance at $500 — not in July, and not ever again to date. Around September 6th, the coin dropped from $500 and started heading down until it reached support at $300. After that, it remained very close to it from September 21st until early November, when it made an attempt to grow, but it only came close to $400 before being rejected once again.

Finally, the coin reached a support at $180 on December 9th, and it spent the rest of the month fluctuating between this support and a resistance at $240. COMP ended 2021 with its price at $200.

Compound in 2022

The new year started with its price at $201, and for the first five days, the situation seemed optimistic, as the price was increasing towards $240 once again. The coin actually reached this level on January 5th, but on the very next day, the price crashed back to $200.

COMP price in 2022

Unfortunately, the support did not manage to hold, and the coin dropped to $180, while $200 became a resistance. COMP was then trying to breach this level between January 6th and Janaury 15th, when it finally got rejected, which sent its price spiraling down towards its current bottom at $120.

COMP reached this level on January 22nd, and for the last 7 days, it fluctuated between this support and a resistance at $130.

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.

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