COMP Regains Footing, After New Yearly Low

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In Brief
  • COMP has bounced at the $265 support area.

  • It is following a short-term descending resistance line.

  • COMP/BTC is following an ascending supoort line.

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Compound (COMP) has been decreasing since May 12 and reached a new yearly low on May 23.

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While it has been increasing since, it has yet to confirm a bullish trend reversal.

COMP re-tests previous resistance

COMP has been decreasing since reaching an all-time high price of $913 on May 12. The decrease has been sharp, culminating with a low of $264 being reached on May 23. 

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However, the decrease also served to validate the previous resistance area of $265 as support. The area thrice acted as resistance from July to September 2020. 

While the token has been moving upwards since May 23, technical indicators are still firmly bearish. The MACD is negative, the RSI is below 50, and the Stochastic oscillator has made a bearish cross.

Chart By TradingView

Cryptocurrency trader @Poiszn outlined a COMP chart which shows a validation of the previous resistance. As seen above, the token has bounced after reaching this level and is now moving upwards.

Source: Twitter

Short-term resistance

The shorter-term two-hour chart shows a descending resistance line that has been in place since the aforementioned all-time high. 

Currently, COMP is making its third breakout attempt. Both the MACD and RSI support the possibility of a breakout. If successful, the next resistance levels would be found at $590 and $666, respectively.

However, the preceding downward movement looks like a completed bearish impulse. Therefore, it is possible that the price is now in the B wave of the A-B-C corrective structure.

Chart By TradingView

COMP/BTC

COMP/BTC has been increasing alongside an ascending support line since January 2021. On May 11, it managed to break out above the ₿0.0145 resistance area. 

However, it only deviated above it (red circle), before crashing below. On May 23, it reached the ascending support line once more and bounced. 

However, similarly to the USD pair, technical indicators are bearish. Therefore, while the token could consolidate below the ₿0.0145 area, a breakout seems unlikely.

Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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