Caution: a16z Quietly Dumping Its COMP Holdings - Coinspeaker

Key Notes

• a16z has deposited 400,000 COMP ($18.33M) into Coinbase in structured 100K batches.
• On-chain data shows no signs of internal reshuffling or redeployment, suggesting the move is not a hedge or rebalance.
• Despite sell pressure, COMP hovers near a key breakout level with upside targets up to $81.66 if resistance is breached. .

In a series of calculated, sparking concerns among market watchers, top venture capital firm Andreessen Horowitz (a16z) is quietly offloading significant portions of its Compound (COMP) holdings.

According to blockchain analytics platform OnChain Lens, a16z deposited another 100,000 COMP tokens—valued at approximately $4.58 million—into Coinbase on June 29, following earlier transfers totaling 300,000 COMP.

Until now, the total amount sent to the exchange by a16z stands at 400,000 tokens worth $18.33 million. As per an earlier report, even the founder of Compound, Robert Leshner, was allegedly caught dumping his COMP holdings, attracting criticism from market participants.

According to crypto researcher Charlie0, the sales are methodically structured in 100K batches every 24 hours into Coinbase Prime, with no visible signs of internal reshuffling, test transactions, or redeployment into DeFi protocols.

“That suggests it’s not a hedge or rebalance; it’s likely full divestment,” he stated. Unless this behavior changes, the move looks increasingly like a strategic exit.

Governance Token at Risk

Compound, a pioneer in decentralized finance (DeFi), has been a16z’s portfolio highlight since 2020, when the firm received 1 million COMP tokens as a lead investor.

Despite the selloff, a16z still holds around 275,000 COMP tokens—roughly $12 million at current prices, as per Arkham data.

Technical Analysis: Is There Still Hope?

Despite the looming sell pressure, COMP is trading near a pivotal breakout point. The daily chart reveals a descending triangle with a strong horizontal support near $43 and a downtrend resistance line from its December highs.

The target for the pattern is calculated by adding the height of the pattern to the breakout price—projecting a price target of approximately $57.

COMP Price Analysis | Source: TradingView

The RSI reads 45.37, hovering near neutral territory but slightly bearish, indicating weak momentum. Meanwhile, the MACD histogram is below the zero line, though the blue MACD line and signal line appear poised for a bullish crossover.

From a Fibonacci perspective, bullish targets stand at 0.236 Fib ($49.34), 0.382 Fib ($52.75), 0.5 Fib ($55.57), and another major resistance is at 0.618 Fib (58.51). The possibility of breaking $100 in the short-term remains slim.

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