- COMP price has flashed sell signals on the daily timeframe, hinting at a trend reversal.
- Bearish divergence on the daily chart suggests COMP could shed 30% of its market value and tag $50.
- A daily candlestick close above the $76 hurdle that flips it into a support floor will invalidate the bearish thesis.
COMP price seems to be rallying despite clear signs of waning momentum on the daily timeframe. This development is screaming ‘sell’ and is a warning to the holders of the Compound platform’s token of an incoming drop.
Read more Ripple and XRP coverage here:
XRP update: Ripple win in landmark SEC case likely puts XRP and crypto market in jeopardy for these reasons
Can XRP price hit $1? Watch these levels next
Breaking: Ripple records landmark win against the SEC as court rules XRP is not a security except...
COMP price ready to undo recent gains
COMP price set up two higher highs on July 2 and July 15 at $71 and $76, which at first look seems normal. But on closer observation, investors can note that this uptrend is ready to reverse.
The Wave Trend indicator flashed a bearish crossover on July 7 in the overbought region, which signals that it is time to sell. But COMP price continued to rally higher and set up a higher high on July 15, as mentioned above. This uptick, despite the sell signal, led to the formation of a bearish divergence, which is the second sell signal
The Relative Strength Index (RSI) and Awesome Oscillator (AO) have both set up lower highs, while COMP price has created a higher high. This setup is termed bearish divergence and often results in a downtrend.
COMP/USDT 1-day chart
While the correction outlook for COMP price is based on multiple sell signals, the crypto market recently and suddenly flipped bullish due to the SEC vs. Ripple lawsuit decisions. Hence, a sudden spike in buying pressure in Bitcoin or altcoins is not unlikely.
Under these circumstances, if COMP price produces a daily candlestick close above the $76 hurdle and flips it into a support floor, it will invalidate the bearish thesis. In this case, Compound bulls could propel altcoin to $80.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: BNB, OKB, BGB tokens rally as BTC, Shiba Inu and Chainlink lead market rebound
Cryptocurrencies sector rose by 0.13% in early European trading on Friday, adding $352 million in aggregate valuation. With BNB, OKB and BGB attracting demand amid intense market volatility, the exchange-based native tokens sector added $1.9 billion.
US SEC may declare XRP a 'commodity' as Ripple settlement talks begins
The US SEC is considering declaring XRP as a commodity in the ongoing settlement talks with Ripple Labs. FOX News reports suggest Ethereum's regulatory status remains a key reference for XRP’s litigation verdict.
Cardano Price Prediction: ADA could hit $0.50 despite high probability of US Fed rate pause
Cardano price stabilized above $0.70 after posting another 5% decline in its 3rd consecutive losing day. Multiple ADA derivatives trading signals are leaning bullish, but the US trade war impact outweighs the positive shift in inflation indices.
Stablecoin regulatory bill receives green light during Banking Committee hearing
The US Senate Banking Committee voted on Thursday to advance the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to establish proper regulations for stablecoin payments in the country.
Bitcoin: BTC at risk of $75,000 reversal as Trump’s trade war overshadows US easing inflation
Bitcoin price remained constrained within a tight 8% channel between $76,000 and $84,472 this week. With conflicting market catalysts preventing prolonged directional swings, here are key factors that moved BTC prices this week, as well as key indicators to watch in the weeks ahead.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.