- COMP is currently trading at $152 and has established a double bottom.
- The digital asset is down 44% since its all-time high at $276.5.
Compound was one of the most successful DeFi projects to hit the market, jumping towards $1 billion in market capitalization just days after getting listed. Compound is still ranked 41st, and bulls are looking for a clear breakout to the upside.
COMP/USD 12-hour chart
On the 12-hour chart, the TD sequential created a strong buy signal right after COMP price managed to defend $145, a support level established on September 6. The price formed a clear double bottom, which is also considered bullish. Similarly, the RSI has also defended the same level.
IOMAP Chart
Not only that, but the Bollinger Bands are getting squeezed significantly, indicating that a big move might happen soon. Unfortunately, the IOMAP chart shows little support between $151 and $140, which means that a bearish breakout would be devastating for COMP and could bring the digital asset down to $110.
If the buy signal gets a continuation move, the next most significant resistance cluster is found at $168. It's worth noting that COMP whales have continued buying coins even though prices have been declining since the all-time high on September 1. This indicates long-term strength and huge interest in the digital asset.
COMP/USD 4-hour chart
After holding another double bottom at $147, bulls are ready to bounce towards the next most crucial short-term resistance at $159.6. A clear breakout and close above this level should validate the buy signal on the 12-hour chart.
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
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.