- Compound price at the verge of seeing a squeeze higher as supportive measures do their work.
- COMP price could rally up to 55% as only two obstacles are in the way.
- Expect it to hit the upper target if equity markets coincide with the global rally.
Compound (COMP) price is set to rally firmly into the week as the positive sentiment from Friday spills over into Monday. ASIA PAC already saw bulls storming out of the gates and buying any price action available in a renewed hope for a quick end to the inflation drag. With commodities tumbling yet again, inflation pressures could start to ease and open up room for a recovery in risk assets, such as cryptocurrencies, setting up COMP price for a lucrative 55% gain.
COMP price needs to jump one hurdle
Compound price looks to be set up perfect for a rally of just 55%, as a technical setup is unfolding this morning. After price action shot through $50.63, it came back down for a retest over the weekend, found support, and now looks set to pop above the high of last week. With a perfect playbook long-strategy, traders could be bracing for a rally up to $60, which coincides with the 55-day Simple Moving Average (SMA).
COMP price will see traders probably taking a bit of profit around that 55-day SMA, as it is a crucial level to surpass if price action wants to rally further. Should equities keep rallying throughout the week, expect to see a spillover effect, aiding COMP price action with tailwinds, and lifting it above that technical hurdle. From there, a region opens up with no real resistance before roughly hitting $79, with the monthly pivot and a critical historical level coming into play.
COMP/USD daily chart
Since last week’s rally has been so quick and stretched, the Relative Strength Index has been overheating quite quickly and could hit the overbought level even before the $80 handle is reached. That would lead to the rally losing steam and possibly see bigger profit-taking, with COMP price action collapsing to $50.63, to look for support again. Should that level not hold, expect to see a full paring back towards $30 as the whole rally gets unwound.
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
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption.
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
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.