COMP Spins 18%: Ascending triangle pattern in Play

Despite Compound developers launching Compound Treasury to allow institutions to lend their digital tokens as collateral, Compound (COMP) coin was unable to stop its recent downtrend and fell below $62.00. COMP is one of several protocols of interest that have emerged due to the proliferation of blockchain-based DeFi applications.

Synthesis is an independent algorithmic system that runs on the Ethereum (ETH) blockchain. Compound aims to provide users with a cryptocurrency-based platform similar to traditional financial money-market accounts where investors can access their investments. However, Compound Coin’s continuous downward rally is solely due to the performance of the underground crypto market.

With weak global markets and recession fears in powerhouses like the United States and Europe, the cryptocurrency market has been glowing red since the beginning of the week. On the other hand, the strong US dollar, backed by high interest rates, was another key factor that put ApeCoin under pressure.

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Borrow Options Live it becomes Introduced

According to recent Compound kriptovalyutnogo news, the protocol will allow institutions to borrow on September 14, 2022. According to a Medium post, institutions can now borrow through Compound Treasury, using digital assets as collateral to meet the increasing demand for liquidity. Accept US Dollar or USDC loans along with ETH, BTC and other ERC-20 tokens. Fixed rates starting at 6% APR (Annual Percentage Rate) are now available to approved institutions.

Compound Treasury offers a 4% interest rate on USD and USDC loans. As with compound treasury management, this measure is designed to increase demand for liquidity while reducing market volatility. Compound Treasury is backed by Compound Labs, which has prominent clients such as fintech companies, banks and blockchain developers. The Vice President of Compound Treasury believes that the new lending option will continue to serve their customers during this uncertain time.

Customers can borrow indefinitely with no repayment schedule. According to the firm, the only requirement is that consumers remain ‘over-committed’ to crypto assets. As a result, the price of the compound increased, but the gain was short-lived as the bear took the center of the crypto market.

Bearish Cryptocurrency Market

Considering the weak global market and recession fears in key countries like the United States and Europe, the cryptocurrency market has been declining since the beginning of the week and is still trading. The US Federal Reserve’s aggressive inflation policy further dampened sentiment. This comes after the Fed raised interest rates by 75 basis points.

Meanwhile, the US dollar breached the 111 level, leaving cryptocurrencies vulnerable to a greenback. As a result, the underground crypto market has been seen as one of the main reasons why the compound coin has come under pressure.

Composite (COMP) price and Tokenomics

The current price of the compound is $62.66 and the 24-hour trading volume is $50,548,645. In the previous 24 hours, the combination was down 0.18%. However, it has gained 17.68% in the last seven days. Compound is currently ranked #77 on the market, with a live market value of $455,364,243. There are 7,267,152 COMP coins in circulation, with a maximum supply of 10,000,000.

Composite Price Chart – Source: Tradingview

The COMP/USD pair moves sideways on the technical front, with prices ranging from $60.39 to $65.98. The ascending triangle pattern keeps the COMP cut in the 4-hour period, and the double top pattern could provide significant resistance at $65.98.

A break above $65.98 could extend the advance to $70.27. The 50-day moving average at COMP shows an uptrend above $58.75. MACD and RSI diverge, with RSI in a buy zone and MACD in a sell zone. A break below $60.39 could extend the selling trend to $55.35 or $51.65.

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