The recent overbought level in the crypto market as a whole, expressed in intense bullish sentiment levels, allowed for a halt in the uptrend toward a fall in prices. Notwithstanding the reversal, the bullish COMP/USD scenario stays intact as it roared near $273 highs of June 26. Having set an intra-day low of $186, its upside bias gains traction as COMP/USD rises to $270. Over the past 24 hours, COMP/USD has risen by about 41 percent and is now more than 80 percent higher than a week earlier. Yet a look at the technical picture despite the upsurge implies it’s up for a sustained rally. COMP is one of the token locked in DeFi protocols with the highest total value in US dollars. The latest price surge highlights decentralized finance (DeFi) sector growth in the market.
*The bullish COMP/USD scenario stays intact as it roared near $273 highs of June 26
*Having set an intra-day low of $186, its upside bias gains traction as COMP/USD rises to $270
*Compound is one of the token locked in DeFi protocols with the highest total value in US dollars
Resistance Levels: $320, $300, $273
Support Levels: $220, $190, $160
COMP/USD Daily Chart: Bullish
COMP/USD Daily Chart
Technical analysis on the daily chart suggests that the token is in a bullish phase with buyers affecting price staying longer than usual. If more investors enter the market, COMP/USD may be ready to broaden its rally beyond $300 with the bullish phase having an uncertain medium to a long term limit.
Compound exchanges near the upper limit of its daily horizontal channel, as seen in the chart above. The coin recently broke out of a declining wedge, and the price has already tested the said channel’s lower borders. Bulls are, however, retesting the top that serves as a high of June 26 at $273. On the contrary, sellers may want to drive to lows of $113 of August 2 but a spike in buying interest is probable to see buyers breaching the $273 resistance.
COMP/USD 4-Hour Chart: Bullish
COMP/USD 4-Hour Chart
Compound runs to heights beyond $250 earlier in the day, but the dominance of short-term sellers dragged the pair down thus expanding its reversal. An upward shift is imminent, as the bullish COMP/USD outlook stays intact amid the $270 decline identified with the RSI lingering beyond 70.
The bullish grasp is also demonstrated by the 4 hour MA 50 crossing of the MA 200 upwards. To the upside, a breach beyond the level of $250 reveals more short-term gains towards the level of $273 and probably $300. The COMP/USD pair is only positive while exchanging beyond the level of $220, the main resistance is seen at the level of $273 and $300. Sellers may test the $190 and $160 levels if the COMP/USD pair exchanges beneath the $220 level.
Note: Kryptomoney.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
Image Credit: Shutterstock