See More

Compound (COMP) Attempts to Reclaim Long-Term Support Area

2 mins
Updated by Ryan Smith
Join our Trading Community on Telegram

In Brief

  • COMP is facing resistance at $128.
  • Technical indicators on the daily time-frame are bullish.
  • The price is following a short-term ascending support line.
  • promo

The Compound (COMP) price fell below the $128 area at the beginning of October and has been trading below it since.
However, the price seems to have reversed its trend and is likely to reach that area once more.

Breakdown From Support

The COMP price has been declining since it reached a high of $272.61 on Sept 1. The fall briefly paused at the end of Sept, with the price seemingly finding support above $130, but COMP broke down shortly afterward and proceeded to reach an all-time low of $80.62 on Nov 3. However, the previous all-time low included bullish divergence on the RSI and the MACD, both of which are moving upwards. Furthermore, the Stochastic Oscillator has made a bullish cross, confirming the upward trend. Therefore, the COMP price should reach the $130 area.
COMP Breakdown
COMP Chart By TradingView
Cryptocurrency trader @VentureCoinist stated that since other DeFi coins are pumping, COMP could be the next one in line, targeting the $150 area for the next upward move.
COMP Breakout
Source: Twitter
If the price successfully moves above $130, the next resistance area would be at $150. However, at the current time, we cannot confidently state that the price will break out successfully. Some patience is required until the price trades close to that area.

Short-Term Movement

The shorter-term two-hour chart shows that the price is following an ascending support line, having done so since it reached the previously-mentioned all-time low. The line is currently near $94. While the price has created a series of higher lows, there is significant bearish divergence developing on both the RSI and the MACD, whose trend-line has yet to be broken. Unless the trend-line is broken, COMP will likely drop towards the $94 area, which is both the 0.618 Fib level of the upward move and coincides with the ascending support line, before eventually moving towards the $130 resistance area.
COMP Short-Term Movement
COMP Chart By TradingView

Conclusion

To conclude, the COMP price could potentially drop in the short-term, before moving higher towards the $130 resistance area. At the time of writing, we cannot determine whether the price will break out or get rejected at $130. For BeInCrypto’s previous Bitcoin analysis, click here! 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
Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona 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. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored