thecoinrepublic.com
- Compound token price breakout 50 day EMA with a giant bullish candle and attempting to break the 200 day EMA hurdle.
- Comp crypto price recovered 70% from the recent lows at $29.86 and formed a bullish reversal pattern.
The compound token price is trading with bullish cues and bulls have succeeded to break out of the narrow range consolidation which has triggered the positive sentiment and grabbed the attention of investors. Currently, The pair of COMP/USDT is trading at $51.74 with the intraday gains of 31.15% and 24 hour volume to market cap ratio stood at 0.3282
Is the massive spike in the compound price fake or real ?
On a daily time frame, Compound token prices are quite stable and buyers have tried multiple times to break out of the 50 day EMA but due to bear dominance on higher levels prices got rejected and remained sideways but recently some positive development in the price action is visible.
From the past couple of months prices traded in the narrow range between $29.00 to $43.00 with a bearish bias but surprisingly bulls succeeded to break out of the higher range and formed a giant bullish candle indicating some gunnine buyers might have taken long positions and expecting the price to continue the upward momentum. Recently, prices have broken out of the 50 day EMA hurdle with a massive volume which shows the strength of buyers and if buyers are able to hold the $50.00 level, prices may gain further momentum towards $60.00 and $70.00 level.
The spike in the compound token looks real and sustainable but prices are trading near to overbought zone which may trigger minor retracement from the higher levels. However, minor corrections will provide an opportunity for the buyers to accumulate at lower levels and $40.00 will act as an important support for Compound investors.The MACD had generated positive crossover indicates bullishness may continue in coming days whereas the RSI is above 80 denotes, prices are highly overbought.
Summary
Compound token prices had broken out of the narrow range consolidation with a higher volume bar which shows the confidence of buyers at lower levels and bulls are expecting the price to continue the upward movement. The technical analysis suggests that prices are near to oversold zones and minor cool off is possible. However, minor corrections will provide a better opportunity for compound investors. Therefore, aggressive traders might wait for retracement towards $45.00 level for deploying long positions for the target of $60.00 and above by keeping $40.00 as SL and if prices drop below $35.00 the recent up-move will be treated as a bull trap.
Technical levels
Resistance levels : $70.00 and $80.00
Support levels : $43.00 and $30.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.