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Compound (COMP) hit a new 2021 high of $377.1 as most of the DeFi sector pushed towards the upside. What’s next for Compound and is it a good buy at the moment?

Compound is a DeFi-based lending protocol that allows its users to earn interest on their cryptocurrency holdings by depositing them into one of several pools that they support. Ever since the launch of its mainnet in September 2018, Compound has skyrocketed in both popularity and price, and recently passed over $800 million in total locked value.

Compound’s fundamentals are incredibly bullish at the moment thanks to two factors: the rise in popularity of the platform and DeFi as a whole. Compound has many partners within the DeFi and crypto sector, including Ledger and Aave, but are also backed by major players in the game, such as Coinbase, Polychain Capital, and Paradigm.

Taking a look at its week-over-week performance, COMP posted gains of 53.52%. When compared to the other top cryptos, COMP clearly outperformed both BTC and ETH, which posted losses of 0.71% and 6.78% over the same period, respectively.

At the time of writing, COMP is trading for $349, which represents a month-over-month increase of 109.47%. The cryptocurrency currently rank 29 by market cap, boasting a value of $1.6 billion.

COMP’s daily technical outlook is very bullish as the cryptocurrency started gaining bullish momentum over the weekend. The leg up continued today, with COMP’s price reaching as high as $377.1 at one point. Even though the price has descended slightly since then, Compound’s move doesn’t seem like it is over and a push towards a higher high is entirely possible.

Compound’s upside is guarded by the 78.6% Fib retracement level sitting at 353.22, as well as by the 2021 high of $377.10. Its first strong support level, however, is right above the 50% Fib retracement level of 254.30.

COMP’s RSI level on the daily timeframe has entered the overbought area, with its current value sitting at 72.39.

If we zoom in to the hourly timeframe, we can see Compound’s steady movement towards the upside in recent hours. Even though bulls could not establish their presence above the $353.22 level, the cryptocurrency seems like it will find support in its 21-hour EMA and bounce off of it towards new yearly highs. It’s important to note that, while COMP’s 21-day and 50-day EMAs are too far away to play a significant role in its immediate price movement, its 21-hour and 50-hour EMAs aren’t. In fact, COMP’s eventual pullback may be entirely dependant on how the cryptocurrency reacts to the aforementioned moving averages.

The post Is Compound (COMP) a good buy at the moment? appeared first on Invezz.

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