Compound Technical Analysis: COMP/USD succumbs to selling pressure, down 55% since its peak at $385
|- COMP/USD is currently trading at $173 after an extended downtrend on all timeframes.
- Compound only started trading two weeks ago.
Compound had an explosive start with an initial market capitalization of $590 million and getting up to $910 million. The trading volume has increased tremendously over the past few days from $5 million to $243 million on July 2, however, this hasn’t translated in more gains but rather an extended downtrend.
COMP/USD daily chart
What looked like a normal pullback after such a significant bull move, it’s now a confirmed downtrend. Bulls obviously don’t have many support levels and they need to climb above the daily 12-EMA at $214.
COMP/USD 4-hour chart
Here the 12-EMA has acted as a strong resistance level for a few days. Right now, COMP is basically in freefall mode but the RSI is oversold and could indicate that a possible bounce is coming.
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