Compound Prepares For A Major Rally To $80, Here Is Why
The price of COMP remains above the daily 50 EMA as it approaches $80.
Price remains bullish, holding above key support areas
COMP price ranges in an asymmetric triangle with high buy orders.
The Compound (COMP) token price has recently been volatile as price ranges in an asymmetric triangle prepare for a breakout to a region of $80 against tether (USDT). Despite the fact that the crypto market is in a state of flux, the Compound (COMP) price has shown tremendous strength as it attempts to break out of its trading range. (Data from Binance)
Compound (COMP) Price Analysis On The Weekly Chart
Despite a drop in price from $850 to $30, a drop of more than 70% from its all-time high. COMP’s price showed great strength as it rallied from its weekly low of $30 to a high of $60 before failing to break above that region to higher heights.
The price of COMP has remained in a range as it is unable to break above a weekly resistance of $66 in order to trend higher to a region of $80.
To have a better chance of trading higher, the COMP price must break and close above $66. The price of COMP has formed an uptrend line that is acting as support; flipping this area of resistance into support will signal a more relief bounce for the price of COMP.
If the price of COMP fails to break through this key resistance region, we may see the price of COMP range within this channel or retest the $40 and lower support and demand zone for more buy orders.
Weekly resistance for the price of COMP – $66
Weekly support for the price of COMP – $40.
Price Analysis Of COMP On The Daily (1D) Chart
The daily timeframe for COMP prices is still strong, with prices ranging in an asymmetric triangle with high volume. Despite being rejected from a high of $65, the price has remained in a range forming an asymmetric triangle, with volume increasing in anticipation of a major breakout.
On the daily timeframe, the price of COMP is currently trading at $61, above the 50 Exponential Moving Average (EMA), which acts as a support for the price of COMP, and below the 200 EMA, which acts as resistance for the price of COMP. The price of $54 corresponds to the 50 EMA support, while the price at $80-$86 corresponds to the resistance.
The price of COMP needs to break above this resistance to rally high.
The Relative Strength Index (RSI) for COMP is above 60 on the daily chart, indicating more buy order volume.
Daily resistance for the COMP price – $66.
Daily support for the COMP price – $54-$45.
Featured Image From zipmex, Charts From Tradingview