COMP Reaches New All-Time Low Price After Breakdown From Support

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In Brief
  • COMP has fallen below the $130 area to a new all-time low.

  • The price is trading inside a descending wedge.

  • There is resistance at $145 and $165.

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The Compound (COMP) price has fallen below a long-term support level and has proceeded to fall to a new all-time low. However, the price is trading inside a bullish pattern from which a breakout is expected.



All-Time High to All-Time Low

On Sept 1, COMP reached a new all-time high price when it touched $272.61. What ensued was a very sharp drop that has caused breakdowns from numerous support levels.

More recently, the price made a failed attempt at initiating a bounce on Sept 23, but the upward move could not be sustained, and the price fell below the $130 support level shortly afterward. This caused COMP to continue its descent.



So far, it has reached a low of $101.16, which is a new all-time low price.

Until the price reclaims the $130 area, the trend is considered bearish. Even if the price successfully reclaims it, there are several resistance areas above, starting with the $163 area.

COMP Chart By TradingView

There are no bullish reversal signs, at least not on the daily time-frame.

The RSI and Stochastic Oscillator are falling, and the MACD made a failed attempt at moving upwards and has begun to decline once more.

COMP Chart By TradingView

Future Movement

Cryptocurrency trader @IncomeSharks outlined a COMP chart, which shows a possible support level near the current price.

Source: Twitter

While the price has declined below the level since the tweet, it looks like it has created a descending wedge, which is a bullish reversal pattern. The price is approaching the end of the wedge and trading just above its support line.

The RSI has formed considerable bullish divergence inside its oversold region, a sign that the price should successfully break out. If it does, the closest resistance areas are found at $145 and $185, respectively.

COMP Chart By TradingView

The short-term chart supports this possibility since there is a pronounced bullish divergence on the RSI that has created an ascending support trendline. Furthermore, the MACD has crossed into positive territory.

Therefore, a rally towards the resistance line of the wedge looks very likely, with a possible breakout following.

COMP Chart By TradingView

To conclude, even though COMP has just reached a new all-time low price, a breakout from the current pattern is expected, which could take the price towards the resistance levels outlined above.

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Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

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