Compound Price Analysis – COMP Could Rally to $100 If Broader Market Turns Bullish

Highlights:

• Compound bulls have failed to hold the price above critical resistance after earlier pump
• Failure to hold above resistance mainly due to weakness across the market
• Compound core fundamentals support a rally to $100 in an all-out bull market 

Compound (COMP) has pumped on a day when most cryptocurrencies are unmoved. When going to press, Compound was up by 14.69% to trade at $47.39. Compound trading volumes have also shot up in the day, up by 382.48% to hit a high of $219.59 million. Compound’s price action and volume data point to a buildup in FOMO.

Investors are buying Compound in anticipation of higher prices in the short to medium term. Already, social media is abuzz with trader predictions of Compound hitting $100 or higher in the short term. Multiple factors could help drive Compound higher in the short to medium term. 

Compound’s Tokenomics Support Possible Rally to $1000

One of them is the tokenomics. Compound has some impressive tokenomics compared to most cryptocurrencies at its current price. Compound only has 10 million tokens in circulation. This is a much lower number of tokens in circulation than even top cryptocurrencies like Bitcoin. While a low number of tokens does not necessarily mean that the price will go up, its a good indicator that Compound is relatively undervalued when trading at under $100. This alone could see investors continue to FOMO into Compound especially now that the price is sending bullish signals relative to the rest of the market.

Compound’s Price Action Points to Underlying Bullish Sentiment

Compound is also attracting investors because its price action today has seen it break out of a multi-year range. Such could be an indicator that an extended bull run is underway for Compound. With signals of altseason coming in, including a decline in Bitcoin dominance in the market, Compound’s price action could draw in investors and send the price to new highs in the short term.

#COMPUSDT The price is in a range channel that is very accumulated and we expect this accumulation to cause a huge upward move, so keep an eye on this analysis. Also, Compound has not grown well for a long time and this is a sign that it is time to see it grow. pic.twitter.com/4hKp8SSnzL

— Archie Fred (@Archie_Fred__) June 4, 2025

Related to Compound’s breakout from a multi-year range is its all-time high. At its peak in 2021, Compound hit prices above $800. Traders looking to make the most of a bull market may FOMO into Compound with a target of its all-time highs, which is an above-average return on investment. 

Compound Core Fundamentals Getting Stronger

Compound could also boosted by the impressive developments happening within its ecosystem. Compound is one of the older DeFi cryptocurrencies, and has over the years been innovating to increase its use value.

One impressive development that has come out of the Compound team was the move to launch several vaults on Polygon. While the move was controversial, it has the potential to see Compound grow its market share in DeFi after being stagnant for years. This is a factor that adds to the potential for a retest of the 2021 highs of over $800 when DeFi was hot in the market.

Gauntlet and Compound Launch Morpho-Powered Lending Vaults.@0xPolygon #Polygon $Matic pic.twitter.com/UOpuB4PGbH

— orji P.K. Ikechukwu (@iyketech07) March 29, 2025

Broader Market Could Weigh Down on Compound Short-Term

That said, Compound, like every other cryptocurrency faces some market risks. Despite the attempt at a breakout, the broader market needs to gain momentum as well for Compound to head higher. Bitcoin is currently showing weakness around $104,000, especially after fears that BlackRock was looking to sell over $400 million worth of Bitcoin. This has created fears that the cryptocurrency bull market of 2024/25 may have topped out, albeit without any meaningful altseason. Such fears could hold investors back from pumping money into Compound despite its ongoing pump.

BlackRock moved 4,113 $BTC (worth $429M) to Coinbase Prime just two hours ago.

What are they up to? pic.twitter.com/5mqtPjfNnc

— Money Guru Digital (@Moneygurudigi) June 2, 2025

Technical Analysis – Compound Bulls Losing Momentum

After a pump earlier in the day that saw Compound rally through multi-day resistance at $47.10, bears have pushed the price back below resistance. This indicates that despite the underlying bullish momentum in Compound, the broader market is weighing down on it.

If bulls regain control, rally through $47.10, and the broader market turns bullish, Compound could rally to $100 short term. However, if sentiment in the broader market remains subdued, Compound could continue trading in a range between the $47.10 resistance and $39.35 support.