• Compound price had a significant 130% rally since January 22 topping out at $377.
  • The digital asset seems poised for a correction as several indicators have turned bearish.
  • COMP could fall towards the psychological level at $300 in the short-term.

Compound, like the rest of the DeFi sector, had a significant rally in 2021, jumping from a low of $134 on January 1 to $377 on February 1. The digital asset is now overextended and on the verge of a significant but healthy correction.

Compound price could fall as low as $300

The TD Sequential indicator has presented a sell signal on the daily chart, after five consecutive days of gains. The digital asset hasn’t experienced a significant correction since January 18.

comp price

COMP/USD daily chart

The MVRV (30d) chart is extremely overextended into the danger zone above 28%, which historically has lead COMP towards heavy corrections back in August, September, and November 2020. 

comp price

COMP MVRV (30d) chart

The In/Out of the Money Around Price (IOMAP) chart shows that the most significant support area is located between $304 and $315, with 122,000 COMP in volume and 1,450 addresses. Validation of the sell signal on the daily chart can push Compound price down to $300.

comp price

COMP IOMAP chart

However, the IOMAP chart also indicates that there is practically no resistance above $340 until $355. A breakout above $355 can quickly push Compound price to the all-time high of $377.

comp price

COMP/USD daily chart

Using the Fibonacci Retracement tool, other potential price targets can be determined on the way up, besides the all-time high. At the 127% level ($435) we find the nearest but Compound price could potentially climb towards $508 at the 161.8% level.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP