HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Compound (COMP) Could Rally 25%+ as Analysts Eye Technical Strength

Other 2020/08/17 03:00 by Cole Petersen

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.

Compound COMP

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.

0 Like(s)



You should also read...

Bitcoin 22/06/20 00:00 by Cole Petersen
Why Analysts Expect Bitcoin to Plummet to $7,700 as Technical Strength Degrades
Bitcoin’s consolidation phase is showing few signs of letting up anytime soon. The benchmark crypto is still trading within the lower-$9,000 region, and the support just below its current price leve...
Read More
Other 08/07/20 19:00 by Cole Petersen
Chainlink (LINK) Enters “Price Discovery Mode” as Analysts Eye Move to $11
Chainlink (LINK) is once again entering another parabolic uptrend, with this one coming about in tandem with the surge seen across the aggregated crypto market. The cryptocurrency’s intense uptrend ...
Read More
Altcoins 28/07/20 23:00 by Cole Petersen
Analysts Now Expect XRP to See a “Moonshot” Rally After Breaking Crucial Level
XRP’s price has seen some slight gains in recent times but is still lagging behind many of its peers. While Bitcoin, Ethereum, and many altcoins all post intense upswings that have led them into ful...
Read More
Altcoins 20/08/20 12:00 by Nick Chong
DeFi Giant Compound (COMP) Dives 9%: What’s Next for the Ethereum Token?
Following Bitcoin, Ethereum, and other top cryptos lower, Compound (COMP) has shed 9% in the past 24 hours., the asset now trades at $180, lows not seen in over a week. COMP’s -9% performance in...
Read More
Bitcoin 07/09/20 00:00 by Cole Petersen
Here’s the Key Level Bitcoin Needs to Break to Extend Its Macro Momentum
Bitcoin has seen some mixed price action throughout the past several days and weeks, struggling to garner any sustained buying pressure as its price hovers just above its crucial support between $9,90...
Read More