Compound’s price has been caught within an intense consolidation phase throughout the past week, with COMP oscillating primarily between $190 and $220.
The cryptocurrency has been struggling to garner any clear momentum, with the crypto’s intense upswing seen earlier this month starting to show some signs of faltering.
Despite this, analysts remain confident that COMP is well-positioned to see further upside, with analysts noting that a break above $217 could be enough to spark an intense rally up towards its highs.
This potential rally comes as the crypto’s technical outlook begins growing increasingly bright, with bulls recently conducting a “clean” support-resistance flip that has led one analyst to anticipate near-term upside.
The confluence of its recent momentum, coupled with its strong technical outlook, seems to indicate that it may be just days away from reclaiming its recent highs.
Compound Consolidates as Momentum Begins Stalling
At the time of writing, Compound is trading up just under 3% at its current price of $200. This is around the price at which the cryptocurrency has been trading throughout the past week.
Earlier this month, COMP bulls were able to push its price to highs of $262. This is where its momentum stalled, and it entered a sharp downtrend that led it to lows of just under $190.
From here, the crypto has been consolidating between these lows and highs of nearly $220, not being able to break above or below either of these levels.
One analyst explained in a recent tweet that multiple factors are now counting in its favor.
He points to the cryptocurrency’s volume downtrend breaking, as well as a clean support-resistance flip as factors that suggest upside is imminent.
“I like how COMP looks. Break of the downtrend on high volume (similar action to ’19 BTC breakout from 3k), clean S/R flip. Imo easy 25%, but I hope to turn this into a swing trade,” he said.
Image Courtesy of Cryptorangutang. Chart via TradingView.
Here’s How High COMP May Push in the Near-Term
Another analyst echoed this bullish sentiment, explaining that he believes Compound is well-positioned to see a significant push higher in the near-term.
He notes that for this breakout rally to come to fruition, the token’s price must flip its range highs around $217 as support.
“COMP looks pretty good for a run at the highs if it can flip 217,” he said while pointing to the below chart.
Image Courtesy of Nik Patel. Chart via TradingView.
Because the aggregated DeFi sector remains caught within a strong uptrend, there’s a solid chance that this will also be enough to lift Compound even higher.
Featured image from Unsplash. Charts via TradingView.