Looking for the COMP power to bounce
It took 90 days for Compound to make a journey from a top new DeFi token to exploring all time low territories again. A kind of a 'halving' for COMP price:
What's next? Could this be an entry point? Or last stop before dump?
There's a set of indicators we'd like to see if we are considering to enter.
- 1. We want to see a low MVRV.
Both 7d and 30d MVRV are 'below water' in negative areas. The average profit or loss of all addresses that acquired COMP last week or month is now sitting at low risk levels. Lower MVRV means a token is basically undervalued. In some sense it's too early to use this metric for relatively young token, but still.
2. We want to see a good onchain activity.
