- 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
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.