The decentralized finance (DeFi) token COMP looks like it’s ready to break out, according to the crypto analytics firm Santiment.
COMP, the Ethereum governance token for DeFi lending platform Compound, launched on June 15th. Within one week, the token’s price skyrocketed more than 400% to a high of $381.89. It has since come down to Earth and is currently trading around $135.77.
However, Santiment says several market metrics indicate it may bounce back.
$COMP appears to be in a great position for a potential turnaround, according to the real-time metrics we're seeing on Sanbase PRO. Track the chart to see the bullish developments for:
1. DAA
2. Network growth
3. Transaction volume
4. Social volumehttps://t.co/4EleYExoKL pic.twitter.com/ZXWesq0hNQ— Santiment (@santimentfeed) July 30, 2020
The analytics firm also says traders can track a top altcoin to get a sense of when Bitcoin is likely to make a big move.
Santiment says recent price action supports the long-held theory that Litecoin (LTC) gains are a harbinger of Bitcoin bull runs.
“LTC may not be on the crypto community’s radar these days the way it was in 2017’s bull run. But the notion that its pumps foreshadow BTC rallies still have serious legs, after it started to rally around 24 hours prior to Bitcoin.”
Santiment notes that Litecoin’s current fundamentals are mixed, with the asset’s social sentiment looking bullish, while on-chain transaction metrics are leaning bearish.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/sdecoret
