TLDR
- Compound Labs announced plans to launch a dedicated foundation for supporting protocol development
- Comp Price initially fell 6% to $ 42 after the announcement
- Comp experienced an intradag –rally of almost 100% before they face rejection
- Long -term holders sell as shown with 17 -month high in “Age Consumed” metric
- Price must recover $ 44.60 as support to switch to a haussey view
Compound Labs, the team behind the popular Defi lending protocol United Financing, recently announced plans to start a dedicated basis for streamlining operations and supporting the protocol’s long-term development. This news created significant price vollatility for Comp, the protocol’s native token.
The announcement came on April 1, with composite laboratories that noted that the establishment of a foundation has become standard practice in large defi ecosystems. The team believes that a similar structure would provide more stability, legal clarity and the community’s adaptation to Compoy’s operations.
In June 2020, the composite protocol was decentralized with the launch of Comp and full transmission of control to society through governance. As a fundamental part of decentralized financial infrastructure, the association is designed to exist in eternity – open, autonomous and …
– Compound Labs (@compoundfinance) April 1 2025
Association is one of the most popular Defi lending protocols at Ethereum. According to the Defillama data, the platform currently has $ 2.5 billion in total value raised (TVL).
After the announcement, Comp initially fell about 6% to a room was $ 42. Token later recovered something to shop at about $ 45.
Wild price fluctuations
The market reaction to Foundation News has been fleeting. Comp’s price increased by 102% below the intraded pile on Tuesday before letting down. Over 24 hours, Comp increased by 10%, with Crypto Token’s price trading to $ 43.68.
While the rally was remarkably, the price remains under pressure due to ongoing skepticism from investors. The failure to ensure $ 44.60 as support indicates that additional reductions are possible.
If the current baisse -like feeling is intensified, Comp may face additional pressure downwards. Technical analysis indicates that if the current trends hold, Comp may fall to $ 37.62.
In order for the Baisse outlooks to be annulled, the composition must regain and secure $ 44.60 as support. If this happens, the price can rise by $ 48.44 and potentially surpass the market of $ 50.00.
Investor’s feeling becomes negative
Market indicators show increasing concern among investors. Chaikin Money Flow (CMF) indicator has recently reached a low low low and signals large outflows from association.
Investors have been quick to act and pay their holdings as concerns about the announcement of the composite foundation continue to delay. This suggests that investors react to short -term factors and are deeply concerned about the broader consequences for the future of the token.
The unusually high outflows indicate that the basic message aroused a strong negative feeling. The first optimism was dampened by questions about the necessity of such an organization.
The “age -consumed” metric for association recently nailed to its highest level of 17 months and emphasized that long -term holders have started selling their positions. This sale from patient investor is usually a baisse -like signal.
When long -term holders sell, it often signals doubts about the future growth of the asset. Since these investors usually have for longer periods, their decision proposes to liquidate eroding confidence in Compoy’s prospects.
This decline in investors’ feeling can lead to continued sales prints and further price decreases in the short term.
The proposed composite foundation would be independent of composite laboratories and all existing units. It would offer a layer of coordination and leadership for the protocol’s stakeholders.
Compound Labs said that the foundation’s goal would be to provide a model similar to what the Uniswap Foundation offers its society, facilitates governance, development and communication between contributors.
Before proceeding, Compound Labs plans to collect the community feedback through their forums.
The team acknowledged that the protocol’s early operational model was fundamental, which reflected Defi’s experimental nature during its early days. However, when the platform was matured, the lack of a central structure made it more difficult to handle critical processes.
Despite outsourcing areas such as risk assessment to Gauntlet and security audit for Openzeppelin, the absence of a formal basis created unnecessary complexity.
The team stated: “With the upcoming development of composite V4 and growing commitment to Social Forum, together with the progressive decentralization of the compound ecosystem and the recruitment of commitment from compound laboratories, we have seen the growing need for more consistent structure.”
Comp currently deals with $ 43.68, captured between strong baisse -like signals and potential for recovery if it can overcome important resistance levels.
