- COMP Price shot up by 150% in the past 3 weeks.
- COMP price is currently trading at $68.7, trying to validate the breakout by sustaining near the upper levels after hitting an all-time low of $25.55.
Compound (COMP) cryptocurrency is a lending protocol allowing users to earn interest on their cryptos by depositing them in several pools and providing tokens representing the individual’s stake. The tokens may be further used to redeem their initially deposited cryptos.
Compound (COMP) is currently trading at $67.30. It is up by 6.15% from the previous day’s closing, indicating that the Compound (COMP) price is again in control of Bulls and may surge to hit a 3-digit mark soon. It acquires a market cap of $511 Million ranking at 78th cryptocurrency in the ocean of the crypto market. It receives a daily volume of $171 Million in a day. The volume-to-market cap ratio is 33.16% which shows that the volatility in the market is at its peak
COMP Price Analysis: Will The Rally Continue or It’s Just a Trap?
COMP price was in a long-term correction and consolidation phase with lower support at $24 to $26 and getting rejection from an upper trendline thus formed. price went on consolation in the zone making lower highs & shortening its range. on 10th June Bears tried to dominate & Price made an all-time low of $25.55,
However, the bears failed and could not close below the demand zone. Buyer’s then turned the Table and started punishing the Bears with a massive Rally to the Upside resulting in a Breakout of Descending Triangle pattern and a Massive 150% hike in the Price.
COMP price currently trading at $68.7 is trying to validate the breakout by sustaining above the trendline. Now If the price consolidates in the upper level and breaks out, then it will again result in positive momentum for the market and the COMP price may hike upto $100
However, If COMP price takes a pullback, it may come to test its previous breakout level of the trendline at $45, and then Bulls may again Try to dominate the market.
On the other hand, If the bears want to dominate the market, they have to drag the prices down and sustain below $45.
Indicator Analysis
COMP price is currently trading at $68.7 and has made a breakout to 50 EMA and 20 EMA with a solid marubozu candle formation in the weekly timeframe indicating short-term bullishness in the compound cryptocurrency.
The current RSI Value of COMP coin is 61.6 which shows the bull’s domination over the bears in the market. Also, a change in the trend in RSI is observed clearly.
MACD has made a crossover which shows bullishness in the market and histogram bars can be seen forming above the histogram with increasing height confirming the short-term bullish trend in the market.
Conclusion:
Compound (COMP) Cryptocurrency currently trading at $68.7 has made a breakout of the descending triangle formed during its correction phase. COMP price Made a breakout by forming a marubozu candle and the price hiked by Almost 150% in the past 3 weeks. Currently, COMP Price is trying to sustain near upper levels. If the price sustains and breaks again bulls will dominate and the price may again soar Up by 30 to 50 % to hit a mark of $100
Key Levels:
- Support Area at $26.4 to 30.9
- Resistance Area at $70.9 to 74.7
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
