COMP gains 15% on Coinbase listing

COMP gains 15% on Coinbase listing
  • Coinbase lists COMP token on the exchange, as well as Coinbase iOS and Android apps
  • Compound project and Coinbase exchange are closely associated with the latter still owning COMP tokens
  • COMP price gained over 15% on the listing as it trades in a volatile fashion following the rollout

A major crypto exchange Coinbase provided support for the recently-released COMP by listing it on both of its retail and Pro platforms. COMP price is trading in a volatile fashion following the rollout.

Fundamental analysis: Coinbase lists COMP

In a blog post on Thursday, Coinbase announced that COMP digital coin is now listed on the exchange and made available on Coinbase iOS and Android applications. 

“Coinbase customers can now buy, sell, convert, send, receive or store COMP. COMP will be available for customers in all Coinbase-supported regions, with the exception of New York state,” Coinbase wrote.

The digital currency exchange is closely related to Compound as it supported the project back in 2018 and still owns a certain amount of COMP tokens, according to the blog post.  

“Coinbase intends to maintain its investment in Compound for the foreseeable future and maintains internal policies that address the timing of permissible disposition of its digital assets, including COMP tokens.”

COMP was a popular subject on the internet over the past few days as the unfortunate rollout of the token from two weeks ago turned into a triple-figure rally. Upon its launch, COMP was listed at $80 which means it gained around $170 over the last 12 days. 

Still, COMP’s release was not so favourable. Since COMP is a governance token that’s provided to lenders free of charge to bring as many new clients to the platform, traders immediately took advantage of that and borrowed the token against themselves for free. 

According to some analysts, people were purchasing COMP tokens from spot markets along with COMP perpetual swaps on derivatives exchange FTX, to boost the price growth.

Technical analysis: Volatile price action

The COMP price advanced nearly 20% on the news of Coinbase listing. Prior to the news, COMP price was hovering at around $210, 40% less than at the start of the week when its price was at $350. 

Compound price 4H chart (TradingView)

On Friday, the digital asset gained over 15%, although it is trading nearly 10% lower today. If the slide continues, then look at $215 – an ascending trend line – as support for the buyers. On the upside, the area around $380 capped two COMP rallies and it will remain a key resistance.

The token hit its all-time high of $372 last Sunday. 

Summary

COMP price gained over 15% after the coin was listed on a major crypto exchange Coinbase. The exchange is closely associated with the Compound project and it still owns a certain amount of COMP tokens. 

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.
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